1. Governmental funds report current financial resources. However, governmental funds may report some assets which are not current financial resources. Which of the assets below is not a current financial resource at December 31, 2021?

A. Investments expected to be sold in 2022.

B. An advance to an enterprise fund that is scheduled to be repaid, with interest, in

February, 2024.

C. A and B.

D. Neither A nor B.

2. Which of the following statements is correct?

1. Deferred inflows of resources are a form of liability that is unique to the governmental funds.
2. The revenue from property taxes is recognized in the period when an enforceable legal claim arises or when resources are received, whichever occurs first.
3. A and B.
4. Neither A nor B.

3. Which of the following statements is correct?

1. In Wayfair vs. South Dakota, the Supreme Court established the concept of economic nexus for online retail sales by retailers who do not have physical nexus in the state in which the retail sales were made.
2. The general fund should report a transfer of resources to an internal service fund in the expenditures section on the statement of revenues, expenditures, and changes in fund balance.
3. A and B.
4. Neither A nor B.