Culver City Recognizes as Revenues/expenditures Those Amounts Collected/paid During the Year

question 40

Multiple Choice

Culver City recognizes as revenues/expenditures those amounts collected/paid during the year or within 60 days of fiscal year-end. The city offers a pension benefit to its employees who meet certain age and years of employment criteria. The city participates in the State Pension Plan. Per its contractual arrangement, the city's required contribution to the State Pension Plan for the fiscal year ended 6/30/18 is $5 million. Due to cash inflow shortages the city, which budgeted $5 million for pension contributions, paid only $4 million in the fiscal year ended 6/30/18. The city paid the remaining amount on September 30, 2018. Assuming the city maintains its books and records in a manner that facilitates the preparation of government-wide financial statements, how should the city record the pension contribution and any associated liability for the year ended 6/10/18?

• A) Debit Expenditures $5 million; Credit Cash $4 million and Pension contribution payable $1 million.
• B) Debit Expenses $5 million; Credit Cash $4 million and Pension contribution payable $1 million.
• C) Debit Expenditures $4 million; Credit Cash $4 million.
• D) Debit Expenses $4 million; Credit Cash $4 million.

Comprehend the impact of systematic biases and heuristics on decision-making and policy.

Apply knowledge of voting paradoxes and strategic voting to real-world scenarios.

Evaluate the efficacy of various solutions to principal-agent problems, including monitoring and contract design.

Understand the concept of Arrow's impossibility theorem and its implications for social choice theory.

---

Definitions:

Kruskal-Wallis Test

A non-parametric method for testing whether samples originate from the same distribution, used as an alternative to the one-way ANOVA when the assumptions of ANOVA are not met.

Statistics

The science of collecting, analyzing, interpreting, and presenting data to make decisions or draw conclusions.

7-point Scale

A scale used for data collection, often in surveys, that ranges from 1 to 7, allowing respondents to indicate varying degrees of opinion or experience.

Statistical Technique

A methodological approach used in statistics for collecting, analyzing, interpreting, and presenting data.