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Government Revenues from Sales Taxes

9. 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
a. when the underlying sales transaction takes place
b. on the date the merchant must remit the taxes to the government
c. on the date the merchant must file a tax return
d. when the taxes are received by the government

10. 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
a. when the underlying sales transaction takes place
b. on the date the merchant must remit the taxes to the government
c. on the date the merchant must file a tax return
d. when the taxes are received by the government

Solution Preview

9. d.
Because the governmental fund statements provide a detailed short-term view that helps to determine whether there are more or less financial resources that can be spent in the near future to finance the state's programs. In governmental funds, revenues are recognized when they ...

Solution Summary

Government Revenues from Sales Taxes are discussed. The solution is detailed and well presented. The response received a rating of "5/5" from the student who originally posted the question.

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