Question

A government recognizes property tax revenue early as GASB permits. Property taxes levied in 2016 should be reported as General Fund revenues in fiscal year 2017:

a. For the amount collected in 2017 only.
b. For the amount collected in 2016 and 2017 only.
c. For the amount expected to be collected in 2017
after 60 days.
d. Regardless of the fiscal year in which they are
collected.

Answer 1

The correct answer is d. Regardless of the fiscal year in which they are collected.

Step-by-step explanation:

The correct answer is d. Regardless of the fiscal year in which they are collected.

GASB, the Governmental Accounting Standards Board, allows governments to recognize property tax revenue early, even if the taxes are collected in a different fiscal year. This means that property taxes levied in 2016 should be reported as General Fund revenues in fiscal year 2017, regardless of when the taxes are actually collected. This is because GASB permits the recognition of revenue when the resources have been earned, which in the case of property taxes, happens when the taxes are levied, rather than when they are collected.