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Cassandra, Tax Preparer
Category: Tax
Satisfied Customers: 306
Experience:  8yrs experience in taxation for individuals. CTEC Registered and an Authorized E-filer with the IRS
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8. Assume the same facts as in the previous example.

Customer Question

8. Assume the same facts as in the previous example. How
much should the city recognize in grant revenue in its
government-wide statements?
a. $0
b. $1
c. $2
d. $3

9. Assuming that a government will collect its sales taxes
in sufficient time to satisfy the ‘‘available'' criterion, it
would ordinarily recognize revenue from sales taxes in
its governmental fund statements
a. When the underlying sales transaction takes place
b. On the date the merchant must remit the taxes to
the government
c. On the date the merchant must file a tax return
d. When the taxes are received by the government
Submitted: 9 years ago.
Category: Tax
Expert:  Cassandra replied 9 years ago.
HelloCustomerand welcome to just answer.

For question 8....2 million should be recognized in the government wide statements. Answer C

For question 9...... Since the government operates on a cash basis then income would be recognized when received. Answer D
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