Which of the Following Is the Most Likely Reason That

question 47

Multiple Choice

Which of the following is the most likely reason that deferred revenue is reported on the General Fund balance sheet?

• A)qualifying expenditures have been incurred in conjunction with a federal grant
• B)there are property taxes receivable at year end that probably will not be collected for at least 60 days after the end of the accounting period
• C)there are property taxes receivable at year end that will probably be collected within 60 days after the end of the accounting period
• D)the government owes refunds to property owners who have successfully appealed their property tax assessments

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Definitions:

Absorption Costing

An accounting method that includes all direct and indirect manufacturing costs in the cost of a product.

Fixed Costs

Costs that do not change with the volume of production or sales, such as rent, salaries, and insurance.

Reported Income

The income that a company officially reports on its income statement, which has been calculated according to the applicable accounting standards.

FIFO Method

The First-In, First-Out accounting method, where the first items added to inventory are the first ones to be sold or used.