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) when they are available to finance expenditures of the fiscal period.

Question

Quizplus · Accepted Answer

Property tax revenues are recognized in the year for which they were levied under the accrual basis of accounting. This is because the revenue has been earned by the government, even if it has not yet been received in cash.

Under the Accrual Basis of Accounting, Property Tax Revenues Are