Which of the Following Statements Regarding Tax Revenue Recognition in the General

question 9

Multiple Choice

Which of the following statements regarding tax revenue recognition in the General Fund is false?

• A) Tax revenues may be recorded when the tax is levied.
• B) Governments may choose to recognize tax revenue as it becomes available, not when it is initially levied.
• C) Tax revenues are generally recorded at gross amounts of the levy, regardless of expected collections.
• D) Tax revenues are generally recorded net of the allowance for uncollectibles.

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Definitions:

Level of Significance

A threshold of probability set before a study to determine when an observed effect is considered statistically significant, typically denoted by alpha.

Alpha

In statistics, the significance level defined as the probability of rejecting the null hypothesis when it is true.

Critical Value

A point on the scale of a test statistic beyond which we reject the null hypothesis, often associated with the desired significance level of a test.