2009 Wiley FAR, Module 19 (Governmental Accounting), MCQ 44, Page 894.
In December 2007, the general fund of Millard City received $25,000 from the state as an advance on the citys portion of sales tax revenues, and it received $20,000 from property owners for property taxes to be levied in 2008. The advance payment of sales taxes represented the amount that the state collected in 2007 that would have been distributed to Millard in the early part of 2008.
Millard used the advance to pay for expenditures incurred by the general fund in 2007. The cash received from property owners for property taxes to be levied in 2008 will be used to pay for expenditures incurred in 2008.
In accordance with GASB 33, Accounting and Reporting for Nonexchange Transactions, what amount of revenue from these transactions should be reported by Millards general fund on the statement of revenues, expenditures, and changes in fund balances for the year ended December 31, 2007?
A. $25,000
B. $20,000
C. $0
D. $45,000
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