1)

A city that has a 12/31 fiscal year end has adopted a policy of recognizing the maximum amount of property tax revenue allowable under GAAP. Property taxes of $720,000 (of which 5 percent are estimated to be uncollectible) are levied in October 2013 to finance the activities of the fiscal year 2014. During 2014, cash collections related to property taxes levied in October 2013 were $600,000. In 2015 the following amounts related to the property taxes levied in October 2013 were collected: January $30,000; February, $6,000. For the fiscal year ended 12/31/14, what amount should be recognized as property tax revenues related to the 2013 levy on the governmental fund financial statements?

		$720,000.
		$684,000.
		$630,000.
		$636,000

2) A government entity is required to include a statement of cash flows in which of the following financial statements?

		Governmental fund financial statements.
		Government-wide financial statements.
		Proprietary fund financial statements.
		Fiduciary fund financial statements.

3) Employees of the City of Orleans earn ten days paid leave for each 12 months of employment. The city has a policy that employees must take their vacation days during the year in which they are earned. If they do not take vacation in the allotted period, they forfeit the vacation pay benefit. Traditionally, employees have taken 100 percent of the vacation days earned. During the current year, city employees earned $600,000 in vacation pay. Assuming the city maintains its books and records in a manner to facilitate the preparation of government-wide financial statements, which of the following entries should be made in the general fund to record the vacation pay earned during the current period?

		Debit Expenditures $600,000; credit Vacation pay payable $600,000.
		Debit Expenses $600,000; credit Vacation pay payable $600,000.
		Debit Expenditures $480,000; credit Vacation pay payable $480,000.
		No entry required.

3)

A city receives a donation from a citizen who specifies that the principal must be invested and the earnings must be used to support operations of a city-owned recreational facility. The principal of this gift should be accounted for in which of the following funds?

		Trust fund.
		Special revenue fund.
		Permanent fund.
		Internal service fund.