1.Property taxes are an example of:

a.An imposed exchange transaction

b.An imposed nonexchange transaction

c.A derived transaction

d.A government mandated-nonexchange transaction.

e.None of the above.

2.Under the modified accrual basis of accounting, revenues cannot be recognized:

a.Until cash has been collected;

b.Unless they will be collected within 60 days following the year-end;

c.Until they are subject to accrual

d.Until they are measurable and available

e.None of the above.

3.To be considered available, property taxes must have been collected either during the fiscal year or within:

a.The time it takes the Government to liquidate its obligations from the previous year;

b.Thirty days following the year end;

c.Sixty days following the year end;

d.The following year end

e.None of the above.

TRUE OR FALSE?

4.T/F. The choice of the basis of accounting for governmental entity is unavoidably linked to its measurable focus.