The General Fund levies property taxes in the amount of $1,000,000 for calendar year 2009.It expects to collect $950,000 during the year,$30,000 in the first 60 days of the next year,and $15,000 during the rest of the next year.It does not expect to collect the remaining $5,000.How much property tax revenue should it recognize for the year 2009?
A)$1,000,000
B)$980,000
C)$995,000
D)$990,000

Question

Quizplus · Accepted Answer

The General Fund should recognize $980,000 in property tax revenue for the year 2009. This includes the $950,000 expected to be collected during the year plus the $30,000 expected to be collected in the first 60 days of the next year, as these amounts are considered available and measurable within the period or shortly thereafter, according to typical governmental accounting standards. The $15,000 expected to be collected later in the next year and the $5,000 not expected to be collected are not included in the revenue for 2009.

The General Fund Levies Property Taxes in the Amount of $1,000,000