Question

Taxes collected for taxing authorities are recognized as?

- current liabilities
- prepaid insurance
- long-term liabilities
- revenue
- operating expenses

Answer 1

Taxes collected for taxing authorities are recognized as revenue.

Step-by-step explanation:

Taxes collected for taxing authorities are recognized as revenue. Revenue is the income that a government receives from taxation as well as other non-tax sources. It is used to finance government purchases of goods and services and transfers to households and firms.