When should property tax revenues be recognized in the accounting records?
A)when the budget is prepared
B)when the appropriations bill is signed into law
C)when property taxes are levied and available
D)when property taxes are actually received in cash

Question

Quizplus · Accepted Answer

Property tax revenues should be recognized in the accounting records when they are levied and available. This means that the taxing authority has imposed the tax and it is reasonably certain that the revenue will be collected. Recognition should not be delayed until the taxes are actually received in cash, as this could result in a significant delay in recognizing revenue and lead to inaccurate financial reporting.

When Should Property Tax Revenues Be Recognized in the Accounting