A City That Has a 12/31 Fiscal Year End Has

question 33

Multiple Choice

A city that has a 12/31 fiscal year end has adopted a policy of recognizing property tax revenue consistent with the 60-day rule allowable period under GAAP.Property taxes of $600,000 of which none are estimated to be uncollectible are levied in October 2010 to finance the activities of fiscal year 2011.Property taxes are due in two installments June 20 and December 20.Cash collections related to property taxes are as follows: $$\begin{array} { r l l } 1 / 15 / 11 & \text { for property taxes levied in 2009, due in } 2010 & \$ 25,000 \\2 / 15 / 11 & \text { for property taxes levied in 2009, due in } 2010 & \$ 15,000 \\3 / 15 / 11 & \text { for property taxes levied in 2009, due in } 2010 & \$ 10,000 \\6 / 20 / 11 & \text { First install ment of taxes levied in 2010, due } 6 / 20 / 11 & \$ 350,000 \\12 / 20 / 11 & \text { Second installment of taxes levied in } 2010 \text {, due } 12 / 20 / 11 & \$ 150,000 \\1 / 15 / 12 & \text { for property taxes levied in 2010, due in } 2011 & \$ 15,000 \\2 / 15 / 12 & \text { for property taxes levied in 2010, due in } 2011 & \$ 10,000 \\3 / 15 / 12 & \text { for property taxes levied in 2010, due in } 2011 & \$5 , 000\end{array}$$ The total amount of property tax revenue that will be recognized in the government-wide financial statements in 2011 is:

• A) $600,000.
• B) $575,000.
• C) $535,000.
• D) $525,000.

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Definitions:

Standard Deviation

A statistic that measures the dispersion or variability of a set of data points from their mean.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, with a certain degree of confidence.

Millilitres

A metric unit of volume equal to one thousandth of a liter, commonly used in liquid measurement.

Classification

The action or process of categorizing something according to shared qualities or characteristics.