A City with a 12/31 Fiscal Year-End Requires That Restaurants $10 / 1 / 13 - 9 / 30 / 14$

question 44

Multiple Choice

A city with a 12/31 fiscal year-end requires that restaurants buy a license,renewable yearly.Proceeds of the license fees are intended to pay the salaries of inspectors in the health department.Licenses are issued for a fiscal year from October 1 to September 30.During 2014,cash collections related to licenses were as follows Licenses issued during 2013 for the $10 / 1 / 13 - 9 / 30 / 14$ fiscal year $\quad$$\quad$$\$ 30$
Licenses issued during 2014 for the $10 / 1 / 14 - 9 / 30 / 15$ fiscal year $\quad$$\quad$ $\$ 180$ It is anticipated that during 2015 the amount collected on licenses for the 10/1/14-9/30/15 fiscal year will be $45.In September 2013 the amount collected related to 10/1/13-9/30/14 licenses was $144.What amount should be recognized as revenue in the fund financial statements for the fiscal year ended 12/31/14?

• A)$180.
• B)$183.
• C)$210.
• D)$225.

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Definitions:

Trobrianders

An indigenous Melanesian people living on the Trobriand Islands in Papua New Guinea, known for their unique social structure and cultural practices.

Marry

The act of joining two people together in a legal or ceremonial relationship.

Young Man's House

A communal living space or institution in certain cultures where young, unmarried men reside as part of their transition into adulthood.

Trobriand Island

A group of islands in the western Pacific Ocean, known for their unique matrilineal culture and extensive ethnographic study by Bronislaw Malinowski.