Derived tax revenues (income tax or sales tax) should be recognized in the government-wide financial statementsin the accounting period in which

A.The exchange occurs

B. Information about them becomes available

C. It is budgeted

D. It is collected

The correct asnwer is A. But I chose D..becuase in Becker book- F8-19-what u guys think? Or passkey is only applied to governmental fund statment not for government-wide statement??

• Real estate taxes (due)

• Fines and penalties

• Income taxes

• Sales taxes

• Real estate taxes paid in advance

• Restricted grants (earned when spent)

http://www.cpanet.com/cpa_forum/search.asp?KW=derived+tax+re venues&SM=1&SI=PT&FM=28&OB=1

You really need to stop being so lazy and having everyone do your work for you. It's getting ridiculous. I hope board members are on the way to realizing that.

Hi, i read the link u posted..thx for ur posting..i would make sure i check the search next time...

but i still don't see any clear answer on it..some said B ; some said C; some said D. What do YOU think i would like to know? Since u have time to google it, u must have time to answer this question as well. I would say C is the best answer !

BTW, for derived tax revenues in the govt-wide financial statements, the revenues are recognized when the uderlying transactions occur. For example when a sale is made, the govt should then recognize the reulting sale tax.