Which of the Following Is Not Required for an Accrual

question 16

Multiple Choice

Which of the following is not required for an accrual method taxpayer to currently deduct the cost of services received?

• A)The liability must be paid.
• B)The existence of a liability must be established.
• C)The amount of the liability is determined with reasonable accuracy.
• D)The services must actually be provided.

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Definitions:

Free Exercise Clause

A provision in the First Amendment of the U.S. Constitution that guarantees individuals the right to practice their religion freely, without government interference.

First Amendment

The First Amendment is part of the United States Constitution, protecting freedoms concerning religion, expression, assembly, and the right to petition.

Nuncupative Wills

Wills that are made orally in front of witnesses, usually under circumstances where a traditional written will cannot be executed.

Real Property

The ground and everything permanently attached to it including land, buildings, and growing trees and shrubs; the air space above the land is also included.