Please provide the multiple choice answer and justification for question #1, parts 1-4:

1.)

1. Which of the following statements is correct?

A. Deferred inflows of resources are a form of liability that is unique to the government funds.

B. The revenue from property taxes is recognized in the period when an enforceable legal claim arises or when resources are received, whichever occurs first.

C. A and B

D. Neither A nor B

2. Which of the following items would appear in the unadjusted trial balance of a general fund of a local government prepared as of december 31, 2019?

A. Interest receivable on delinquent property taxes

B. Fund balance reserved for encumbrances

C. A and B

D. Neither A nor B

3. The village on Manchesters garbage trucks accidently sideswiped two parked automobiles during the year ended December 31, 2019. Once the case was settled for 3,000 in November, 2019, and the Village expects to pay that claim in January 2020. In the other case, the claimant originally demanded $q5,000. The village attorney thinks that it is probable that the village can settle the claim for $10,000, but it is expected to take several months into 2020 before the case is settled. WHat amount should the village report as a liability for claims on the general funds December 31, 2019, balance sheet?

A. 0

B. 3,000

C. 13,000

D. 18,000

4. Which of the following statements is correct?

A. imposed nonexchange revenues are based upon underlying exchange transactions.

B. If you purchase an automobile from a dealer in Missouri for $26,000 and paid sales tax of $650 (2.5%), you owe the State of Illinois use tax of $975.

C. A and B

D. Neither A nor B

Thank you.