Modified Accrual Basis of Accounting - CPA Financial Accounting and Reporting (FAR)
Card 1 of 24
The city of Frankford assesses a sales tax on all purchases over $40,000. On December 28, Year 1, a sale of $65,000 occurs that will result in a payment of a tax to the city of $2,400. The payment is expected to be received during March of Year 2. Assets such as investments and receivables are viewed as current if they are collectible within 60 days. How should this tax revenue be reported in the Year 1 fund financial statements?
The city of Frankford assesses a sales tax on all purchases over $40,000. On December 28, Year 1, a sale of $65,000 occurs that will result in a payment of a tax to the city of $2,400. The payment is expected to be received during March of Year 2. Assets such as investments and receivables are viewed as current if they are collectible within 60 days. How should this tax revenue be reported in the Year 1 fund financial statements?
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This sales tax assessment will not be recorded in Year 1 because it is not expected to be collected within 60 days of year-end.
This sales tax assessment will not be recorded in Year 1 because it is not expected to be collected within 60 days of year-end.
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Pattinson County is currently preparing general purpose financial statements for Year 1. Currently, they are working on fund-based financial statements for the general fund and special revenue fund. Which of the following will not be reported as assets on the balance sheet for these funds at December 31, Year 1?
Pattinson County is currently preparing general purpose financial statements for Year 1. Currently, they are working on fund-based financial statements for the general fund and special revenue fund. Which of the following will not be reported as assets on the balance sheet for these funds at December 31, Year 1?
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An encumbrance will be recorded for the machine at the time of purchase but an asset will not be recorded until the machine is received.
An encumbrance will be recorded for the machine at the time of purchase but an asset will not be recorded until the machine is received.
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The city of Carlton produces a comprehensive annual financial report which includes general purpose financial statements. Which of the following statements is true?
The city of Carlton produces a comprehensive annual financial report which includes general purpose financial statements. Which of the following statements is true?
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The CAFR includes fund-base statements and government-wide statements.
The CAFR includes fund-base statements and government-wide statements.
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A government wide statement of net position must include which of the following?
A government wide statement of net position must include which of the following?
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The government statement of net position must include a distinction between governmental and business type activities.
The government statement of net position must include a distinction between governmental and business type activities.
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Capital assets donated to a governmental unit should be recorded:
Capital assets donated to a governmental unit should be recorded:
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Capital assets donated to a governmental unit should be recorded at their estimated fair value at time of acquisition, plus ancillary charges, if any.
Capital assets donated to a governmental unit should be recorded at their estimated fair value at time of acquisition, plus ancillary charges, if any.
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In a governmental entity's government wide statement of net position, which of the following would not be included as a liability?
In a governmental entity's government wide statement of net position, which of the following would not be included as a liability?
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All of the following except for prepaid expenses would be a liability. Prepaid expenses are assets.
All of the following except for prepaid expenses would be a liability. Prepaid expenses are assets.
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The city of Frankford assesses a sales tax on all purchases over $40,000. On December 28, Year 1, a sale of $65,000 occurs that will result in a payment of a tax to the city of $2,400. The payment is expected to be received during March of Year 2. Assets such as investments and receivables are viewed as current if they are collectible within 60 days. How should this tax revenue be reported in the Year 1 fund financial statements?
The city of Frankford assesses a sales tax on all purchases over $40,000. On December 28, Year 1, a sale of $65,000 occurs that will result in a payment of a tax to the city of $2,400. The payment is expected to be received during March of Year 2. Assets such as investments and receivables are viewed as current if they are collectible within 60 days. How should this tax revenue be reported in the Year 1 fund financial statements?
Tap to reveal answer
This sales tax assessment will not be recorded in Year 1 because it is not expected to be collected within 60 days of year-end.
This sales tax assessment will not be recorded in Year 1 because it is not expected to be collected within 60 days of year-end.
← Didn't Know|Knew It →
Pattinson County is currently preparing general purpose financial statements for Year 1. Currently, they are working on fund-based financial statements for the general fund and special revenue fund. Which of the following will not be reported as assets on the balance sheet for these funds at December 31, Year 1?
Pattinson County is currently preparing general purpose financial statements for Year 1. Currently, they are working on fund-based financial statements for the general fund and special revenue fund. Which of the following will not be reported as assets on the balance sheet for these funds at December 31, Year 1?
Tap to reveal answer
An encumbrance will be recorded for the machine at the time of purchase but an asset will not be recorded until the machine is received.
An encumbrance will be recorded for the machine at the time of purchase but an asset will not be recorded until the machine is received.
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The city of Carlton produces a comprehensive annual financial report which includes general purpose financial statements. Which of the following statements is true?
The city of Carlton produces a comprehensive annual financial report which includes general purpose financial statements. Which of the following statements is true?
Tap to reveal answer
The CAFR includes fund-base statements and government-wide statements.
The CAFR includes fund-base statements and government-wide statements.
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A government wide statement of net position must include which of the following?
A government wide statement of net position must include which of the following?
Tap to reveal answer
The government statement of net position must include a distinction between governmental and business type activities.
The government statement of net position must include a distinction between governmental and business type activities.
← Didn't Know|Knew It →
Capital assets donated to a governmental unit should be recorded:
Capital assets donated to a governmental unit should be recorded:
Tap to reveal answer
Capital assets donated to a governmental unit should be recorded at their estimated fair value at time of acquisition, plus ancillary charges, if any.
Capital assets donated to a governmental unit should be recorded at their estimated fair value at time of acquisition, plus ancillary charges, if any.
← Didn't Know|Knew It →
In a governmental entity's government wide statement of net position, which of the following would not be included as a liability?
In a governmental entity's government wide statement of net position, which of the following would not be included as a liability?
Tap to reveal answer
All of the following except for prepaid expenses would be a liability. Prepaid expenses are assets.
All of the following except for prepaid expenses would be a liability. Prepaid expenses are assets.
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The city of Frankford assesses a sales tax on all purchases over $40,000. On December 28, Year 1, a sale of $65,000 occurs that will result in a payment of a tax to the city of $2,400. The payment is expected to be received during March of Year 2. Assets such as investments and receivables are viewed as current if they are collectible within 60 days. How should this tax revenue be reported in the Year 1 fund financial statements?
The city of Frankford assesses a sales tax on all purchases over $40,000. On December 28, Year 1, a sale of $65,000 occurs that will result in a payment of a tax to the city of $2,400. The payment is expected to be received during March of Year 2. Assets such as investments and receivables are viewed as current if they are collectible within 60 days. How should this tax revenue be reported in the Year 1 fund financial statements?
Tap to reveal answer
This sales tax assessment will not be recorded in Year 1 because it is not expected to be collected within 60 days of year-end.
This sales tax assessment will not be recorded in Year 1 because it is not expected to be collected within 60 days of year-end.
← Didn't Know|Knew It →
Pattinson County is currently preparing general purpose financial statements for Year 1. Currently, they are working on fund-based financial statements for the general fund and special revenue fund. Which of the following will not be reported as assets on the balance sheet for these funds at December 31, Year 1?
Pattinson County is currently preparing general purpose financial statements for Year 1. Currently, they are working on fund-based financial statements for the general fund and special revenue fund. Which of the following will not be reported as assets on the balance sheet for these funds at December 31, Year 1?
Tap to reveal answer
An encumbrance will be recorded for the machine at the time of purchase but an asset will not be recorded until the machine is received.
An encumbrance will be recorded for the machine at the time of purchase but an asset will not be recorded until the machine is received.
← Didn't Know|Knew It →
The city of Carlton produces a comprehensive annual financial report which includes general purpose financial statements. Which of the following statements is true?
The city of Carlton produces a comprehensive annual financial report which includes general purpose financial statements. Which of the following statements is true?
Tap to reveal answer
The CAFR includes fund-base statements and government-wide statements.
The CAFR includes fund-base statements and government-wide statements.
← Didn't Know|Knew It →
A government wide statement of net position must include which of the following?
A government wide statement of net position must include which of the following?
Tap to reveal answer
The government statement of net position must include a distinction between governmental and business type activities.
The government statement of net position must include a distinction between governmental and business type activities.
← Didn't Know|Knew It →
Capital assets donated to a governmental unit should be recorded:
Capital assets donated to a governmental unit should be recorded:
Tap to reveal answer
Capital assets donated to a governmental unit should be recorded at their estimated fair value at time of acquisition, plus ancillary charges, if any.
Capital assets donated to a governmental unit should be recorded at their estimated fair value at time of acquisition, plus ancillary charges, if any.
← Didn't Know|Knew It →
In a governmental entity's government wide statement of net position, which of the following would not be included as a liability?
In a governmental entity's government wide statement of net position, which of the following would not be included as a liability?
Tap to reveal answer
All of the following except for prepaid expenses would be a liability. Prepaid expenses are assets.
All of the following except for prepaid expenses would be a liability. Prepaid expenses are assets.
← Didn't Know|Knew It →
The city of Frankford assesses a sales tax on all purchases over $40,000. On December 28, Year 1, a sale of $65,000 occurs that will result in a payment of a tax to the city of $2,400. The payment is expected to be received during March of Year 2. Assets such as investments and receivables are viewed as current if they are collectible within 60 days. How should this tax revenue be reported in the Year 1 fund financial statements?
The city of Frankford assesses a sales tax on all purchases over $40,000. On December 28, Year 1, a sale of $65,000 occurs that will result in a payment of a tax to the city of $2,400. The payment is expected to be received during March of Year 2. Assets such as investments and receivables are viewed as current if they are collectible within 60 days. How should this tax revenue be reported in the Year 1 fund financial statements?
Tap to reveal answer
This sales tax assessment will not be recorded in Year 1 because it is not expected to be collected within 60 days of year-end.
This sales tax assessment will not be recorded in Year 1 because it is not expected to be collected within 60 days of year-end.
← Didn't Know|Knew It →
Pattinson County is currently preparing general purpose financial statements for Year 1. Currently, they are working on fund-based financial statements for the general fund and special revenue fund. Which of the following will not be reported as assets on the balance sheet for these funds at December 31, Year 1?
Pattinson County is currently preparing general purpose financial statements for Year 1. Currently, they are working on fund-based financial statements for the general fund and special revenue fund. Which of the following will not be reported as assets on the balance sheet for these funds at December 31, Year 1?
Tap to reveal answer
An encumbrance will be recorded for the machine at the time of purchase but an asset will not be recorded until the machine is received.
An encumbrance will be recorded for the machine at the time of purchase but an asset will not be recorded until the machine is received.
← Didn't Know|Knew It →