During 2014,a State Has the Following Cash Collections Related to State

question 37

Multiple Choice

During 2014,a state has the following cash collections related to state income taxes $\begin{array}{ll} \text { Payroll withholdings and estimated payments related to 2014 income } &\$ 360 \\ \text {4 / 15 / 14 Balance of 2013 net of \$ 10 refunds) income taxes } &\$ 40 \\ \text {1 / 15 / 15 payroll withholdings and estimated payments related to 2014 income } &\$ 30 \\ \text { 2 / 15 / 15 payroll withholdings and estimated payments related to 2014 income } &\$ 35 \\ \text { 3 / 15 / 15 payroll withholdings and estimated payments related to 2015 income} &\$ 25 \\ \text { 4 / 15 / 15 Balnce of 2014 net of \$ 5 refunds) income taxes } &\$ 45 \\\end{array}$ Assuming that the state defines "available" as the maximum period allowable for property taxes,what is the amount of revenue that will be recognized in the 2014 government-wide financial statements related to state income taxes?

• A)$400.
• B)$475.
• C)$430.
• D)$465.

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Definitions:

Acid-Test

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets without relying on the sale of inventory.

Current Ratio

A financial ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Cash Discount

A reduction in the invoice price offered by sellers to buyers as an incentive for early payment.

Invoice Date

The date on which an invoice is issued, marking the beginning of the period in which payment is expected according to the terms of sale.