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

question 24

Multiple Choice

A city that has a 12/31 fiscal year end has adopted a policy of recognizing the maximum amount of property tax revenue allowable under GAAP.Property taxes of $720,000 (of which 10 percent are estimated to be uncollectible) are levied in October 2013 to finance the activities of the fiscal year 2014.During 2014, cash collections related to property taxes levied in October 2013 were $600,000.In 2015 the following amounts related to the property taxes levied in October 2013 were collected: January $30,000; March, $6,000.For the fiscal year ended 12/31/14, what amount should be recognized as property tax revenues related to the 2013 levy on the governmental fund financial statements?

• A)$720,000.
• B)$648,000.
• C)$630,000.
• D)$600,000.

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