Under modified accrual accounting, property tax revenue should be recognized when measurable and available; available means collected no more than 90 days after year-end.

Question

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Revenue recognition occurs when the resulting resources are deemed to be both measurable and available to finance expenditures of the current period. Property taxes collected within 60 days after the end of the fiscal year may be deemed to be available and recorded as revenue in the year assessed rather than the year collected.

Under Modified Accrual Accounting, Property Tax Revenue Should Be Recognized