In accounting for property taxes, under the modified accrual basis, existing standards provide that, except in unusual circumstances, revenues should be recognized only if cash is expected to be collected by year-end.

Question

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Under the modified accrual basis of accounting, revenues (including property taxes) are recognized when they are both measurable and available to finance the expenditures of the current period, not solely based on the expectation of cash collection by year-end.

In Accounting for Property Taxes, Under the Modified Accrual Basis