Test:CPA Financial Accounting and Reporting (FAR)

1.

The city of Frankford assesses a sales tax on all purchases over $40,000. On December 28, Year 1, a sale of $65,000 occurs that will result in a payment of a tax to the city of $2,400. The payment is expected to be received during March of Year 2. Assets such as investments and receivables are viewed as current if they are collectible within 60 days. How should this tax revenue be reported in the Year 1 fund financial statements?

It should be divided proportionately between Year 1 and Year 2

As an encumbrance

It should not be recorded until Year 2

As a revenue

1/20 questions

0%

Access results and powerful study features!

需要15秒来创建一个帐户。
Start now!Create your free account and get access to features like:
  • Full length diagnostic tests
  • 邀请你的朋友
  • Access hundreds of practice tests
  • Monitor your progress over time
  • Manage your tests and results
  • Monitor the progress of your class & students
By clicking Create Account you agree that you are at least 13 years old and you agree to the Varsity Tutors LLCTerms of UseandPrivacy Policy.
Learning Tools by Varsity Tutors