Which of the following is the best rationale for the recommended method of accounting for property taxes?
A)Governmental agencies levy arbitrary amounts to corporations for property taxes.
B)Governmental agencies levy an assessment against corporations as municipal services are utilized.
C)Government agencies levy tax assessments on a specific date but provide services throughout the year.
D)Governmental agencies levy tax assessments during the year but only provide services periodically.

Question

Quizplus · Accepted Answer

The rationale behind the recommended method of accounting for property taxes is that government agencies levy tax assessments on a specific date but provide services throughout the year. This means that the tax is assessed at a particular point in time, yet the benefits of the services for which the tax is levied are spread over the entire year. This approach helps in matching the tax expense with the period in which the services are received, adhering to the matching principle in accounting.

Which of the Following Is the Best Rationale for the Recommended