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

question 45

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 2016 to finance the activities of fiscal year 2017. Property taxes are due in two installments June 20 and December 20. Cash collections related to property taxes are as follows: The total amount of property tax revenue that should be recognized in the governmental fund financial statements in 2017 is:

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

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Definitions:

Catastrophes

Extreme and sudden disasters or events causing significant damage or suffering.

Hassles

Hassles are minor irritations or annoyances that individuals encounter in everyday life, which can accumulate and contribute to overall stress.

Eustress

Positive stress that has beneficial effects on health, motivation, performance, and emotional well-being.

Death Rate

The statistical measure of the number of deaths per unit of population, typically expressed per 1,000 or 100,000 people per year.