A city that has a 12/31 fiscal year end has adopted a policy of recognizing property tax revenue consistent with the 60-day rule allowable period under GAAP. Property taxes of $600,000 (of which none are estimated to be uncollectible) are levied in October 2016 to finance the activities of fiscal year 2017. Property taxes are due in two installments June 20 and December 20. Cash collections related to property taxes are as follows: The total amount of property tax revenue that will be recognized in the government-wide financial statements in 2017 is:
A) $600,000.
B) $575,000.
C) $535,000.
D) $525,000.

Question

A city that has a 12/31 fiscal year end has adopted a policy of recognizing property tax revenue consistent with the 60-day rule allowable period under GAAP. Property taxes of $600,000 (of which none are estimated to be uncollectible) are levied in October 2016 to finance the activities of fiscal year 2017. Property taxes are due in two installments June 20 and December 20. Cash collections related to property taxes are as follows:  The total amount of property tax revenue that will be recognized in the government-wide financial statements in 2017 is:
A) $600,000. 
B) $575,000. 
C) $535,000. 
D) $525,000.

Quizplus · Accepted Answer

The Answer of A city that has a 12/31 fiscal year end has adopted a policy of recognizing property tax revenue consistent with the 60-day rule allowable period under GAAP. Property taxes of $600,000 (of which none are estimated to be uncollectible) are levied in October 2016 to finance the activities of fiscal year 2017. Property taxes are due in two installments June 20 and December 20. Cash collections related to property taxes are as follows:  The total amount of property tax revenue that will be recognized in the government-wide financial statements in 2017 is:
A) $600,000. 
B) $575,000. 
C) $535,000. 
D) $525,000.

A City That Has a 12/31 Fiscal Year End Has