[JT]

NINJA Question –

The revenues control account of a governmental unit is increased when:

A. the encumbrance account is decreased.

B. appropriations are recorded.

C. property taxes are recorded.

D. the budget is recorded.

The answer is C.

I’m confused. It could be because of my lack of knowledge of govt accounting. I thought it was D. When the budget is recorded, you debt estimated revenue control and credit appropriations; thus increasing revenue control account.

One thing that I HATE about govt acct is the the terms are sometimes not consistently used and they’re not the exact same terms (using both Becker and Ninja I’ve noticed this). On one page it would refer to it as “estimated revenues” and on the next page it would refer to it as “estimated revenues control”. I don’t know about everyone else but that honestly confuses the hell out of me.

The answer gives this explanation “Crediting the revenues control account signifies either that cash has been collected, or that a valid receivable exists. In practice, when property taxes are levied, a receivable is created. The debit to property taxes receivable is offset by a credit to revenues to the extent that the taxes are “susceptible to accrual;” that is, both measurable and available to pay liabilities of the fiscal period. (To the extent that receivable items do not meet the susceptible to accrual criteria, deferred revenues, a liability, is credited.) Budgetary events and accounts (the other answer choices) do not affect the revenue control account.”

From this explanation I’m starting to think

“revenue control”=actual money collected and

“estimated revenue control”=imaginary money through budgeting.

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[Lidis]

Hello
When the property taxes are collected, the following entry is recorded

DR Property tax receivable – current
CR Allowance for uncollectable taxes – current
CR Revenue control

Remembers: encumbrances, appropriations, and budget are budgetary accounts and not real accounts

[JT]

For a regular business, what is the equivalent of a “revenue control” account?

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[Excel14]

@Dab,

I would say just a regular revenue or income acct, would be the equivalent.

BEC (2/28/16) ----- 78
FAR (09/10/16)-----
AUD
REG

CIA, CGAP, CFE

[JT]

@Excel14,

Thank you.

Wow, this is actually a really easy/simple question that I missed!.

I LOATHE GOVT ACCOUTING!!!

REG-80-1X
BEC-80-1X
FAR-73-1X
FAR-75-2X
AUD-September 2016

[Author]

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