USE THE FOLLOWING DATA TO ANSWER THE QUESTION

question 6

Multiple Choice

USE THE FOLLOWING DATA TO ANSWER THE QUESTION.
Hicksville has a proposed budget of $7,000,000 for the fiscal year. The city has an assessed value of $100,000,000 and will receive state aid of $100 per capita based on its 2000 census population of 15,000. Assessed value equals 25% of market value.

-What is the effective tax rate in Hicksville?

• A) .01375
• B) .01750
• C) .05500
• D) .07000

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Definitions:

Operating Cycle

The operating cycle is the average period of time required for a business to convert its inventory into cash through sales processes.

Post-closing Trial Balance

A listing of all company account balances after closing entries are made, ensuring the ledger is balanced before starting the new accounting period.

Temporary Accounts

Accounts in financial accounting that are closed at the end of each accounting period, including income, expense, and withdrawal accounts. They are used to track transactions within a specific period and are reset to zero at the start of a new period to begin tracking new transactions.

Total Debits

The sum of all debit entries in a financial account or ledger, representing expenses or assets.