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

1.)

1. Which of the following statements is correct?

A. A citizen who lives outside the city limits is living in an unincorporated area.

B. A portion of the fund balance in a motor fuel tax fund can be unassugned

C. A and B

D. Neither A nor B

2.

We learned in class that there is a two-year cycle for the assessment and collection of property taxes for local governments in Illinois. The central Illinois Village of Oakdale has a fiscal year that ends December 31. The village spends the entire month of November on preparing its revenues and appropriations budgets for the following year, November on preparing its revenues and appropriations budgets for the following year, and the budgets are passed into law in December. The villages 2019 property tax levy for its general fund is $2,100,000 of which $2,068,500 is expected to be available to finance general fund expenditures in 2020. In the journal entry to record the 2019 property tax levy in December, 2019, which of the following statements is correct?

A. Property tax receivable should be debited for $2,100,000

B. Deferred inflows of resources unavailable property taxes should be credited for 2,068,500

C. A and B

D. Neither A nor B

3. Which of the following statements is correct?

A. On the statement of revenues, expenditures and changes in fund balance for the general fund, the excess of revenues over expenditures and transfers our is added to the beginning unassigned fund balance to derive ending unassigned fund balances.

B. interfund loans made by the general fund to other funds are budgeted in the appropriate budget.

C. A and B

D. Neither A nor B

4. Which of the following statements is correct?

A. When a general fund reports due from other funds on its balance sheet, it means that the general fund must have made a short-term loan to another governmental fund.

B. If the general fund reports other financing uses-transfer out on its statement of revenues, expenditures, and changes in fund balance, it means that resources have been permanently transferred to another fund in the government

C. Both A and B

D. Neither A nor B

Thank you.