During 2014, a state has the following cash collections related to state income taxes Assuming that the state defines "available" as the maximum period allowable for property taxes, what is the amount of revenue that will be recognized in the 2014 governmental fund financial statements related to state income taxes?
A)$400.
B)$405.
C)$430.
D)$465.

Question

During 2014, a state has the following cash collections related to state income taxes  Assuming that the state defines "available" as the maximum period allowable for property taxes, what is the amount of revenue that will be recognized in the 2014 governmental fund financial statements related to state income taxes?
A)$400. 
B)$405. 
C)$430. 
D)$465.

Quizplus · Accepted Answer

The total cash collections related to state income taxes in 2014 is $405 ($50 + $100 + $255). As per the given information, the state defines "available" as the maximum period allowable for property taxes. This means that the revenue that will be recognized in the 2014 governmental fund financial statements related to state income taxes is the amount collected within the fiscal year. Therefore, the recognized revenue will be $430 ($50 + $100 + $280), which is the total amount collected in 2014 ($405) plus the $25 collected in December 2013 but not recognized until the 2014 fiscal year.

During 2014, a State Has the Following Cash Collections Related