Which statement is false concerning revenue recognition for property taxes in governmental funds?

In governmental accounting, property taxes are recognized in the period they are intended to finance, which is essential for proper financial reporting. The correct choice indicates that property taxes must be recognized only after there is an enforceable legal claim, meaning that the government has the right to collect the taxes. This enforceable legal claim usually arises when the taxes are levied.

The availability period for property taxes is relevant because it establishes how soon after the end of the fiscal year the revenue can still be recorded. Generally, this period is limited to 60 days, aligning with the accounting principles that financial statements should reflect revenues for the period they are intended to finance, thus providing a clear and accurate picture of a governmental fund’s financial status.

The statements about the intended financing period and extending the recognition period beyond 60 days align with common practices in governmental accounting. Therefore, the notion that property taxes may be recognized before an enforceable legal claim exists is inaccurate, as it undermines the established principles regarding the timing and assurance of revenue.