Revenues of Governmental Fund Types Should Be Recognized When

question 130

Multiple Choice

Revenues of governmental fund types should be recognized when:

• A) collected in cash.
• B) authorized by the budget ordinance.
• C) taxes become delinquent.
• D) measurable and available.

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Definitions:

Total Cost Method

An inventory valuation method that determines the ending inventory and cost of goods sold by considering all costs of production as product costs.

Invested Assets

Assets that are allocated towards investments including securities, real estate, and other assets expected to produce income or profit.

Break-Even

Break-even point is the level of production or sales at which total revenues equal total expenses, resulting in no net loss or gain.

Fixed Costs

Fixed costs are expenses that do not change with the level of production or sales, such as rent and salaries.