1. The following information pertains to Carson City s liability for claims and judgments:

Claims paid during the year $500,000

Claims to be paid one month after year-end $100,000

Probable claims to be paid one year after year-end $200,000

What amount should Carson City report for current-year claims and judgments expenditures?

		A. $300,000
		B. $500,000
		C. $600,000
		D. $800,000

2. A municipality uses the allowance method to record uncollectible property taxes. If it decides to write-off a specific account as uncollectible, it should

		A. Debit bad debts expenditures and credit allowance for uncollectible property taxes.
		B. Debit allowance for uncollectible property taxes and credit property taxes receivable.
		C. Debit allowance for uncollectible property taxes and credit property taxes revenues.
		D. Debit property taxes revenues and credit property taxes receivable.

3. During Year 5 the city of Bellaire received a $120,000 grant from the state for a special meals for the homeless program required to be administered by the city ratably at $40,000 per year over the next three years, beginning in Year 6. How much should the city report as grant revenue for Year 5?

		A. $0
		B. $40,000
		C. $80,000
		D. $120,000

4. Which of the following statements is not true?

		A. When a taxpayer fails to pay his property taxes, the city may place a lien on the property.
		B. The outstanding encumbrances balance must always be closed at year-end.
		C. A city reports payments in lieu of taxes from other governments as revenue.
		D. An unrestricted grant is reported as revenue only to the extent of the amount spent