GASB Suggests That Income Tax Revenues Should Be Recognized in the Governmental

Multiple Choice

GASB suggests that income tax revenues should be recognized in the governmental 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) governments base the amount of income to be recognized on the amount of withholding and estimated tax payments received during the year, adjusted for settlements and refunds when tax returns are actually filed
D) when earned.