Choose the best answer from the four choicesAssuming that a government will collect its sales taxes in sufficient time to satisfy the “available” criterion, it would ordinarily recognize revenue from sales taxes in its governmental fund statementsWhen the underlying sales transaction takes placeOn the date the merchant must remit the taxes to the governmentOn the date the merchant must file a tax returnWhen the taxes are received by the governmentAssuming that a government will collect its sales taxes in sufficient time to satisfy the “available” criterion, it would ordinarily recognize revenue from sales taxes in its government‐wide statementsWhen the underlying sales transaction takes placeOn the date the merchant must remit the taxes to the governmentOn the date the merchant must file a tax returnWhen the taxes are received by the government

Income taxes are derived from the transactions that produce the income. Therefore, governments…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Choose the best answer from the four choices
Assuming that a government will collect its sales taxes in sufficient time to satisfy the “available” criterion, it would ordinarily recognize revenue from sales taxes in its governmental fund statements
1. When the underlying sales transaction takes place
2. On the date the merchant must remit the taxes to the government
3. On the date the merchant must file a tax return
4. When the taxes are received by the government
Assuming that a government will collect its sales taxes in sufficient time to satisfy the “available” criterion, it would ordinarily recognize revenue from sales taxes in its government‐wide statements
1. When the underlying sales transaction takes place
2. On the date the merchant must remit the taxes to the government
3. On the date the merchant must file a tax return
4. When the taxes are received by the government

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