GASB suggests that income tax revenues should be recognized in the governmental fund financial statements in the accounting period
A) when collected in cash by the taxing authority.
B) in which the underlying income was earned, regardless of when collected.
C) governments base the amount of income to be recognized on the amount of withholding and estimated tax payments received during the year, adjusted for settlements and refunds when tax returns are actually filed
D) when earned.

Question

Quizplus · Accepted Answer

GASB suggests that income tax revenues should be recognized based on the amount of withholding and estimated tax payments received during the year, adjusted for settlements and refunds when tax returns are actually filed.

GASB Suggests That Income Tax Revenues Should Be Recognized in the Governmental