MCQ Notes Flashcards
An organization is most likely to be considered a gov’t if…
it has the power to enact and enforce a tax levy.
Should freight-in costs be included in inventory?
Yes
Should freight-out costs be included in inventory?
No
Per GASB, derived tax revenues are recognized when…
the underlying transaction takes place
For the purpose of determining that no additional segments should be reported, the total of external revenues of all reportable segments must make up at least what percentage of total consolidated revenues?
75%
Estimates of price-level changes for specific inventories are required for which of the following inventory methods?
LIFO
In NFP accounting restricted funds can only be restricted by…
the donor or person providing the resource
Do dividends in arrears need to be reported as a liability?
No, there is no obligation to pay unless other dividends will be paid to other shareholders they would get paid first.
Derived tax revenues, such as income taxes and sales taxes should be _________ if measurable and available
Accrued. (upon receipt)
Typically derived tax revenues are accrued at YE if received within 60 days of year end
Imposed non-exchange revenues, such as property taxes and fines, are recorded as a ________ when billed.
Receivable (accrual when billed)
Examples of derived tax revenues would be?
Income taxes and sales taxes
Examples of imposed non-exchange revenues are?
Property taxes and fines
Payback Parish levied an additional one-cent sales tax intended exclusively for the repayment of Civic Center Bonds. The earnings from this sales tax would most appropriately be recorded in the:
1) General Fund
2) Special Revenue Fund
3) Debt Service Fund
4) Capital Projects Fund
Debt Service Fund (3)
