Under the accrual basis of accounting, property tax revenues are recognized
A)when they are received in cash.
B)in the year for which they were levied.
C)in the year for which they were levied and when collection in cash is reasonably assured.
D)they are available to finance expenditures of the fiscal period.

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting, property tax revenues are recognized in the year for which they were levied, regardless of when they are collected in cash. This is because property taxes are levied based on the assessment of property values as of a certain date, typically January 1st, and therefore represent a claim on a specific fiscal period. Thus, recognition of property tax revenues should be based on this fiscal year, rather than on when the cash is collected.

Under the Accrual Basis of Accounting, Property Tax Revenues Are