F8 - Modified Accrual Accounting

Question 1

What is derived tax revenue?

Answer 1

Derived (non-exchange) tax revenues represent taxes imposed on or derived from exchange transactions such as commercial sales (sales taxes)

Question 2

What is imposed non-exchange tax revenue?

Answer 2

Imposed non-exchange revenues represent taxes imposed on non-exchange transactions (such as fines) or wealth (such as property taxes)

Question 3

What is the journal entry to record a purchase order under modified accrual accounting?

Answer 3

Encumbrance XX

Budgetary control XX

Question 4

How should state appropriations to a state university choosing to report as engaged only in business-type activities be reported in its statement of revenues, expenses, and changes in net position?

Answer 4

As nonoperating revenues