Generally, nonincome taxes are recognized in the financial statements in the period in which they are incurred.

Question

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Nonincome taxes, such as property taxes, sales taxes, and other similar taxes, are recognized in the financial statements in the period in which they are incurred, in accordance with the matching principle of accounting. This means that they are recognized as expenses in the same period in which the related revenue is recognized or when the economic benefit of the related item is obtained.

Generally, Nonincome Taxes Are Recognized in the Financial Statements in the Period