Which of the following statements regarding tax revenue recognition in the General Fund is false?
a. Tax revenues may be recognized when the tax is levied.
b. Governments may choose to recognize tax revenue as it becomes available, not when it is initially levied.
c. Tax revenues are recognized at gross amounts of the levy, regardless of expected collections.
d. Tax revenues are recognized net of the allowance for uncollectibles.
e. Both items b and c are false.
Question 2
The payment for the monthly rent will require which of the following entries?
a. debit Cash and debit Rent Expense
b. credit Cash and credit Rent Expense
c. debit Rent Expense and credit Cash
d. credit Rent Expense and debit Cash
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