Accounting Questions
Accounting Questions California State University Northridge Accounting 475 Spring 2022 Homework 1 Question 7
7. Which of the following items is recognized for governmental activities in the government-side statement of activities and not the statement of revenues, expenditures, and changes in fund balance for governmental funds?
A. Transfers between governmental funds.
B. Property tax revenue for an amount deferred because it was not available.
C. A state grant awarded received for road repairs that were completed this fiscal year
D. Salaries payable at the end of the current year that will be paid at the beginning of the subsequent year.
Answer
B. Property tax revenue for an amount deferred because it was not available.
Explanation.
Property tax revenues that are measurable but not available at year end are recorded as deferred inflows of resources in governmental fund presentations and not recognized as revenues consistent with the modified accrual basis of accounting. Government-wide financial statements are presented on the full accrual basis of accounting and would recognize property tax revenue regardless of availability. Worksheet entries used to prepare the government-wide financial statements would eliminate the deferred inflow and recognize revenue.