Property Taxes in the Amount of $3,000,000 Are Billed to City

question 54

Multiple Choice

Property taxes in the amount of $3,000,000 are billed to city property owners. It is estimated that two percent will prove to be uncollectible. In recording this event,

• A)estimated Revenues would be credited for $2,940,000.
• B)bad Debts would be debited for $60,000.
• C)tax Liens Receivable would be debited for $60,000.
• D)allowance for Uncollectible Current Property Taxes would be credited for $60,000.

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Definitions:

Coefficient

A coefficient is a numerical or constant quantity placed before and multiplying the variable in an algebraic expression, often representing a measure of some property or effect.

Variation

The degree to which data points in a set differ from the mean value of the set, indicating the distribution and dispersion of the set.

Investment Portfolio

A collection of investments held by an individual or institution, including stocks, bonds, real estate, and other assets.

Financial Assets

Assets that derive their value from a contractual claim on future cash flows or from owning equity instruments of another entity.