Under the modified accrual basis, property taxes are recognized in the period in which cash is received, regardless of when the taxes were levied.

Question

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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. Amounts expected to be collected after the 60 days would be recorded as deferred revenue.

Under the Modified Accrual Basis, Property Taxes Are Recognized in the Period