In which situation(s) are property taxes due to a governmental unit reported as deferred inflows of resources in the fund financial statements?
I. Property taxes are collected in advance of the year for which they are levied.
II. Property taxes will not be collected soon enough in the next year to finance current-year expenditures.

Question

In which situation(s) are property taxes due to a governmental unit reported as deferred inflows of resources in the fund financial statements? 
I. Property taxes are collected in advance of the year for which they are levied.
II. Property taxes will not be collected soon enough in the next year to finance current-year expenditures.

Quizplus · Accepted Answer

Property taxes collected in advance of the year for which they are levied are reported as deferred inflows of resources since they cannot be recognized as revenue until the next fiscal year. Property taxes that will not be collected soon enough in the next year to finance current-year expenditures are also reported as deferred inflows of resources.

In Which Situation(s) Are Property Taxes Due to a Governmental