Question

The general fund collects taxes that are legally restricted for use in a future year. The amount of the collections is reported on the general fund's: A. Balance sheet as a deferred inflow. B. Operating statement as an other financing source. C. Operating statement as revenues. D. Balance sheet as a liability.

Answer 1

Answer:

A. Balance sheet as a deferred inflow.

Explanation:

A deferred outflow of resources is defined as “a consumption of net assets by the government that is applicable to a future reporting period,” and a deferred inflow of resources is defined as “an acquisition of net assets by the government that is applicable to a future reporting period.”

Leases—Gain or loss on a sale and leaseback transaction are recorded as a deferred outflow (loss) or deferred inflow (gain). Points received by the lender in relation to loan origination are reported as deferred inflow of resources. Loan origination fees, other than points, are reported as revenue. Deferred inflows of resources - should be reported as a separate section following liabilities in the statement of financial position.

Answer 2

Answer: A. Balance sheet as a deferred inflow.

Explanation:

A general fund is the primary fund used by a government entity. This fund is used to record all resource inflows and outflows that are not associated with special-purpose funds. The activities being paid for through the general fund constitute the core administrative and operational tasks of the government entity