The Following Data Applies to the Next Three Questions

question 136

Multiple Choice

The following data applies to the next three questions:
The City of Charlestown levied property taxes in the amount of $9,000,000. It is estimated that 2% will not be collected. The taxes were levied July 1, 2013 for the fiscal year ended June 30, 2014. During the year ended June 30, 2014, $7,900,000 in property taxes were collected from this levy. It is estimated that $620,000 will be collected during the next 60 days, $300,000 will be collected more than 60 days after June 30, 2014, and $180,000 will never be collected.
-When preparing the General Fund financial statements,how much property tax revenue should be recognized from this levy for the year ended June 30,2014?

• A) $7,900,000.
• B) $8,520,000.
• C) $8,820,000.
• D) $9,000,000.

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Definitions:

Revenues And Expenses

Revenues and expenses refer to the income earned from normal business operations and the costs incurred to generate that income, respectively, impacting a company's net income.

Operating Activities

Part of cash flow analysis, these involve the core business activities of a company including production, sales, and delivery of its product or service.

Long-Term Borrowing

Loans or debts obtained with repayment schedules extending over a period longer than one year.

Dividends Paid

A corporation's distribution of earnings to its shareholders, generally as a profit allocation.