Revenue from property taxes should be recorded in the General Fund

Question

Quizplus · Accepted Answer

Revenue from property taxes should be recorded in the period for which the taxes are levied, as this is when the legal claim to the revenue arises. The general fund should recognize the revenue in accordance with the accrual basis of accounting, which requires recording revenue when it is earned, regardless of when it is received. Therefore, recording the revenue when the taxes are levied is the appropriate timing for recognition in the General Fund.

Revenue from Property Taxes Should Be Recorded in the General