Which of the Following Is True Regarding Revenue Recognition for Property

question 149

Multiple Choice

Which of the following is true regarding revenue recognition for property taxes, when reporting in the government-wide statements?

• A) Assets are recognized when an enforceable legal claim has arisen or when resources are received, whichever is first.
• B) Revenues are recognized when measurable and available; that is, when collected during the current period or no more than 60 days after the end of the current period.
• C) Both of the above are true.
• D) Neither of the above is true.

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Definitions:

Classic Automobile

A vehicle of significant historical interest, typically older models that are collected, preserved, or restored for their nostalgic value and beauty.

Simple Interest

The calculation of interest on the principal amount only, without compounding over time.

Higher Risk Investment

An investment with a greater chance of resulting in a loss or underperforming but potentially offering higher returns.

Balance

The total amount of money in a financial account, calculated by offsetting debits against credits.