Under GAAP, property taxes levied in one fiscal period to finance the activities of the following fiscal period are recognized as revenue in the governmental fund financial statements
A) in the year levied.
B) in the year for which they are intended to finance the activities.
C) when collected, regardless of when levied.
D) in the year for which they are intended to finance the activities, if collected within that period or within a period no greater than 60 days after the close of the fiscal year.

Question

Quizplus · Accepted Answer

Under GAAP, for governmental fund financial statements, property taxes levied in one fiscal period to finance the activities of the following fiscal period are recognized as revenue in the year for which they are intended, provided they are collected within that period or within a period no greater than 60 days after the close of the fiscal year. This approach aligns revenue recognition with the period in which the funds are intended to be used, enhancing the matching principle of accounting.

Under GAAP, Property Taxes Levied in One Fiscal Period to Finance