Reference no: EM132510781

Questions -

Q1. Classifications of fund balance on the reports its operating results sheet include all but which one of the classifications below?

A. Reserved

B. Nonspendable

C. Committed

D. Assigned

Q2. A county's general fund has $4,000,000 in supplies on hand at the start of 2020. It purchases $25,000,000 in supplies and uses supplies costing $26,000,000 during 2020.

If the county uses the consumption method to report supplies inventories, what balances appear in the general fund financial statements for 2020?

A. Expenditures of $26,000,000 and fund balance-nonspendable of $3,000,000

B. Expenditures of $25,000,000 and fund balance-nonspendable of $3,000,000

C. Expenditures of $25,000,000 and no nonspendable fund balance

D. Expenditures of $26,000,000 and no nonspendable fund balance

Q3. At the beginning of 2020, the balance sheet of a county general fund reports $500,000 in property taxes receivable from 2019, of which $350,000 are considered uncollectible. During 2020 the county sends out tax bills in the amount of $10,000,000, of which $600,000 are expected to be uncollectible. Cash collections on 2019 taxes are $140,000, and the remaining uncollected taxes are written off. Cash collections on 2020 taxes are $9,500,000. Of the $500,000 uncollected at the end of 2020, $100,000 are expected to be collected within 60 days, $65,000 are expected to be collected more than 60 days after year-end, and the rest are uncollectible.

The general fund's balance sheet at the end of 2020 will include:

A. Deferred inflows of $165,000

B. Property taxes receivable, net of uncollectibles, of $500,000

C. Deferred inflows of $65,000

D. Property taxes receivable, net of uncollectibles, of $100,000