The General Fund of the City of Atlanta Received a Check

question 66

Multiple Choice

The general fund of the City of Atlanta received a check for $10,000 from an Atlanta resident on July 1,2008.Of the amount received,$4,800 represented full payment of property taxes for 2008,and the remaining $5,200 represented an advance payment for property taxes of 2009.On July 1,2008,the general fund should record the receipt by debiting Cash for $10,000 and by crediting

• A)Revenue-Property Tax for $10,000.
• B)Property Taxes Receivable-Current for $4,800 and Deferred Revenue for $5,200.
• C)Revenue-Property Tax for $4,800 and Deferred Revenue for $5,200.
• D)Property Taxes Receivable-Current for $4,800 and Revenue- Property Tax for $5,200.

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Definitions:

Long-term Debt

Borrowings that are due for repayment after more than one year, used to finance a company's operations and growth.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, typically used by businesses to manage liquidity and ensure they can meet their cash requirements.

Short-term Financial Management

The practice of managing a company's financial activities that are expected to be resolved within a year.

Carrying Costs

The expenses incurred by holding inventory, including storage, insurance, and taxes, over a certain period.