Under GAAP, Income Tax Revenues Should Be Recognized in the Fund

Multiple Choice

Under GAAP, income tax revenues should be recognized in the fund financial statements in the accounting period

A) when collected in cash by the taxing authority.
B) in which the underlying income was earned, regardless of when collected.
C) in which the underlying income was earned, if collected in time to satisfy the budgetary obligations of the preceding year.
D) when earned.