Accounting Questions on the Town of Cary

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Exercise 4-2

4


Continuing

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Problem 4-15

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Chapter 4:
Exercise 4-2
1. e
2. m
3. e
4. h
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6. j
7. c
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Continuing Problem (Questions 1 through 10- textbook page 180) – 2021 Town of Cary, NC CAFR is used for these questions found at /home/showpublisheddocument/27493/637751798814470000
1 Main sources of the Town of Cary, NC 2021 revenues, including sources from both governmental and business-type activities -
The main sources of government revenues include government activity and business-type activities. Property taxes account for the largest percentage of government; activities and are estimated at $ 448 million. Equally, interests and other business-type activities account for the largest sources of government revenues, estimated at $5.7 million. Therefore, taxation such as income tax, sales tax and property tax; fines fees are the main sources of government revenue.
2. Revenues from property taxes are accounted for as – Single amount or Multiple categories
If Multiple categories, identify the various categories and indicate the % breakdown
Accounting for property taxes is recognizable as a single amount
1 Town of Cary, NC ‘s governmental functions or activities with the greatest amount of directly identifiable revenue in 2021 -
Public safety estimated at $ 53,256,870
2 Town of Cary’s 2021 CAFR discusses the accounting basis for recognizing revenue
Yes. Expenditures are generally recorded when a liability is incurred (pg 118)
3 Town of Cary’ 2021 government-wide statement of net position or governmental-fund balance sheet reports “deferred revenue”? Yes or No If yes, most likely reason this amount has been deferred -
Yes. The statement of deferred inflows of resources exists due to the failure of the involved parties to pay for property taxes of the current financial year. However, it is recorded as an overflow into the following year. 
4 Town of Cary’s property tax rate - _______ 1.818%_______________________________
7. Percentage of fair market value real property is assessed - 100%
8. Town of Cary’s property taxes...