Under the modified accrual basis of accounting, the amount of property tax revenues that should be recognized by a government in the current year related to the current-year levy will be
A) the total amount of the levy.
B) the expected collectible portion of the levy.
C) the portion of the levy collected.
D) the portion of the levy collected in the current year or within sixty days after the end of the fiscal period.

Question

Quizplus · Accepted Answer

Under the modified accrual basis of accounting, revenues are recognized when they are both measurable and available to finance the expenditures of the current period. Property tax revenues are considered available if they are collected in the current year or soon enough thereafter (typically within sixty days) to be used to pay for the current period's expenditures. Therefore, the correct answer is the portion of the levy collected in the current year or within sixty days after the end of the fiscal period.

Under the Modified Accrual Basis of Accounting, the Amount of Property