The state collects a gasoline tax that must be used to support highway construction and maintenance. The gasoline tax revenue should be accounted for in which of the following funds? a. General fund b. Special Revenue fund c. Debt Service fund O d. Internal Service fund

The state collects a gasoline tax that must be used to support highway construction and maintenance. The gasoline tax revenue should be accounted for in which of the following funds? a. General fund b. Special Revenue fund c. Debt Service fund O d. Internal Service fund

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Chase City uses an internal service fund for its central motor pool. The assets and liabilities…

A: The correct answer is: (A) Governmental activities The balance in the internal service fund would…

Q: Which one of the following transactions would typically not be recognized in the fiduciary fund? a.…

A: There are three categories of funds in the governmental accounting system.

Q: In a governmental fund, which of the following is considered an expenditure? a. The purchase of a…

A: Expenditure: It can be defined as a payment that is made either via cash or credit card to purchase…

Q: 3. Which of the following accounts appears on both the interim and year-end balance sheets of the…

A: 3. According to the above question,option (d) is the correct one as Appropriation appears on both…

Q: The permanent fund is one of the several types of governmental funds. a. True b. False

A: Governmental funds : In fund accounting system, the government funds are categorized into three…

Q: In a county's ACFR, the basic financial statements are Select one: O a. the government-wide and fund…

A: An ACFR is an Annual Comprehensive Financial Report. It is a set of financial statements for a…

Q: Property taxes levied on the citizens of the Hill County would most appropriately be budgeted in…

A: Property tax is a tax levied on property owned, for example by a company, by an individual or other…

Q: Which of the following is an example of activities that are likely to be accounted for in a…

A: The general fund is a primary accounting fund used by governments to account for general operations…

Q: For each of the following accounts indicate in which fund type it could be found. Select your answer…

A: A government fund is a type of financial account used by government entities to track and manage…

Q: Select all the true statements from the following pool of statements: A - Tax, being one of the…

A: The answer for the question of identifying true statements is discussed hereunder. Tax is a…

Q: Which of the financial statements described below is prepared by the general fund of a state or…

A: The annual financial reports prepared by the government bodies are referred as governmental…

Q: The billings for transportation services provided to other governmental units are recorded by the…

A: Internal service funds play a crucial role in governmental accounting by documenting operations that…

Q: Question Content Area Which of the following provisions of the Internal Revenue Code can be used to…

A: The objective of the question is to identify the provision of the Internal Revenue Code that can be…

Q: 3. Which of the following accounts appears on both the interim and year-end balance sheets of the…

A: Hi, since multiple questions are asked, we are solving the 1st question for you. To get the solution…

Q: Property tax revenue recorded in the governmental funds may differ from the amount recorded at the…

A: This question is related to the recording of property tax revenue in governmental funds and whether…

Q: A city acquires a new police car accounted for in the general fund. How should the city report the…

A: Answer: Option a.

Q: main purpose of the property tax

A: Option A is wrong because there is no need of property tax to forecast overheads. Option C is wrong…

Q: Which of the following would be considered a general capital asset? Select one: a. Real estate…

A: Example of general Capital assets includes improvements to land, easements, buildings, building…

Q: Preparation of government-wide statement of activities

A: Here wehave to understand that the property tax and sales tax is the general government revenue…

Q: accounts should be debited by the general fund

A: General fund consists of revenues and expenses that can not be allocated to Special funds.

Q: 1.Which of the following transactions or events will not be reported in a governmental fund's…

A: Operating Statement includes the revenues and expenditure of a business related to day to day…

Q: A city creates a solid waste landfill. It assesses a charge to every person or company that uses the…

Q: The General Fund used electricity provided by the city-owned electric utility (an enterprise fund of…

A: The revenues and expenses are reported in the income statement of the company. The difference…

Q: A. List down 5 goods and services by the government. B. Explain how the government source the funds…

A: Goods and services provided by the government are called public goods and they vary from nation to…

Q: age prepared through a transfer from the General Fund. Accounts payable Accounts receivable Accrued…

A: Journal entry Method of recording financial transactions in the book of original entry by debiting…

Q: If not expenditure driven, a grant approved and paid by the federal government to assist in a city’s…

A: As reimbursable expenditure is required to be prior recorded, revenues are the grants from outside…

Q: The following water and sewer fund information is available for the preparation of the financial…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: Propose a tax measure in order for the government to eaarn addtional revenue with emphasis ont he…

A: Since you have asked two questions but we provide solution to one question only kindly resubmit…

Q: Indicate (i) how each of the following transactions impacts the fund balance of the general fund,…

Q: The police department of the city of Elizabeth acquires a new police car during the current year. In…

A: Revenue: It is the amount earned by a company or governmental organization on the delivery of goods…

Q: A local government can allocate fund to a religious institution provided that such fund will be used…

A: Following is the answer to the given question.

Q: When a government orders equipment which is to be used by an activity accounted within the General…

A: Encumbrance:Correct: When a government orders equipment which is to be used by an activity accounted…

Q: Journal entries for an Internal Service Fund The following transactions occurred regarding the…

A: Internal Service Fund: A fund that primarily provides either benefits or goods or services to other…

Q: The City of Kastle purchased a vehicle for the parks department. If the operations of the parks…

A: As the asset is finance by general revenue hence it is part of general fund. Governmental activities…

Q: Residents of a neighborhood financed the installation of sidewalks through a note payable. The note…

A: Fund accounting is an accounting system used by governments, nonprofits, and other organizations…

Q: The City of Barnes operates a central motor pool as an internal service fund for the benefit of the…

A: Money, assets, or property of the federal government, a state government, or a local government,…

Q: The City of Jonesboro engaged in the following transactions during the fiscal year ended September…

A: Journal entries are made by the government as well as the businesses so that the transactions which…

Q: ment-mandated non-exchange transactions.

A: Given: To explain the correct option as,

Q: How is the concept of value for money applied in distribution of district assembly common fund

A: Introduction: The District Assemblies' Common Fund (DACF) is a pool of resources created under…

Q: ustify the presentation of the required accounting and financial reports to a city, when it uses…

A: The purpose of financial reporting is to track, analyze and report the earnings of your business.…

Q: Required: From the information given above, prepare a Water and Sewer Fund column for the…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: eferred inflows of resources—property taxes of $73,500 at the end of the previous fiscal year were…

A: This question requires the preparation of journal entries for various adjustments to the books of…

Question

The state collects a gasoline tax that must be used to support highway construction and maintenance. The gasoline tax revenue should be accounted for in which
of the following funds?
a. General fund
b. Special Revenue fund
O c. Debt Service fund
O d. Internal Service fund

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

please explain why the option is correct and remainings are incorrect
Does the modified accrual accounting method apply to this kind of fund? What are the requirements for recognizing sales and expenses under the modified accrual accounting method?
Assets and liabilities of activities for which the government is acting in either an agency or trustee capacity for individuals, organizations, or other governments should be reported in: a. The fiduciary column of the government-wide financial statements. O b. The fiduciary fund financial statements. c. Both government-wide and fiduciary fund statements. d. Neither government-wide nor fiduciary fund statements.
T/F questions 1) Government business type activities provide services to users for fees that are intended to recover all or a portion of the costs of providing the services. 2) General governmental activities provide goods and services to citizens without regard to their ability to pay. 3) Proprietary funds report revenues and expenses using a modified-accrual basis of accounting. 4) The governmental fund accounting equation is Current Assets - Current Liabilities = Fund Balance. 5) Enterprise funds are used to account for business-type activities that serve primarily internal customers. 27) A restricted fund balance represents amounts that can only be spent for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. 28) Government enter the annual budget in the journal by recording a debit to the appropriations account and a credit to estimated revenues. 29) Under accrual accounting, revenues are generally recognized in the…
14) When examining revenue transactions, which of the following transactions is classified as an exchange transaction? A) When a homeowner pays property taxes B) When a university receives a federal grant that mandates a certain type of research activity C) When an aquatic center receives cash for a group swim D) When an employer deducts money for state tax withholding
A local government transfers RO 20,000 from its general fund to an internal service fund to establish a centralized motor vehicle service center. Which one of the following represents the above transfer of funds from the general fund to internal service fund? a. Residual expenditure transfer b. Residual loan transfer c. None of the options d. Residual grant transfer
Construction of a municipal courthouse would typically be accounted for using a: Group of answer choices a.) Capital projects fund b.) Permanent fund c.) General fund
KA The following transactions take place: • A commitment was made to transfer general revenues to the entity in charge of providing transportation for all government agencies. • Construction bonds were issued at a premium. The premium is to be included in funds accumulated to retire the debt. • Police salaries were paid. • Interest and principal were paid on general obligation serial bonds. Required: Indicate the name of the fund(s) in which each of the transactions or events should be recorded.
The General Fund and Special Revenue Funds P4-2 (General Fund-Typical Transactions) Prepare all general journal entries required in the General Fund of Washington County for each of the following transactions. Also, use transaction analysis to show any effects on the GCA-GLTL accounts. The county levied property taxes of $5,000,000. It is estimated that 2% will be uncollectible. The rest of the taxes are expected to be collected by year end or soon enough thereafter to be considered available at year end. The county collected $4,300,000 of the taxes receivable before the due date and the balance of taxes became delinquent. The county collected another $540,000 of the taxes receivable by the end of the fiscal year. The county paid salaries
A special revenue fund used to account for flood control activities has these transactions: Payroll, $4,000,000, equipment purchases, $1,000,000; maintenance costs, $2,000,000; transfers to the general fund, $200,000. The special revenue fund's total expenditures are