Under the Modified Accrual Basis of Accounting Used by the General

question 11

Multiple Choice

Under the modified accrual basis of accounting used by the General Fund,financial resources are considered available if the revenue or other financing source is expected to be collected

• A) Within 60 days after year-end.
• B) Within 90 days after year-end.
• C) During the current fiscal period.
• D) During the current fiscal period or a reasonable time after year-end defined by each individual government.

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Definitions:

FICA Taxes

FICA taxes are federal payroll taxes collected to fund Social Security and Medicare, divided into equal parts paid by employers and employees.

Student Loan Interest

The cost incurred from borrowing funds for education, which can often be deducted from taxable income under certain conditions in many tax jurisdictions.

Deduction Limit

The maximum amount that can be subtracted from taxable income for certain expenses, beyond which deductions are no longer permitted or are reduced.

Tax Year

The 12-month period for which tax is calculated, often either the calendar year or a fiscal year established by a business.