In its governmental fund financial statements, a government should recognize revenue from special assessments
A) In the year it imposes a special assessment.
B) In the year an assessment is due.
C) In the year an assessment is paid.
D) In the year an assessment becomes available for expenditure.

Question

Quizplus · Accepted Answer

Special assessments are recognized as revenue in the year they become available for expenditure, according to the modified accrual basis of accounting used in governmental fund financial statements. This approach aligns with the availability criterion for revenue recognition in governmental accounting.

In Its Governmental Fund Financial Statements, a Government Should Recognize