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:

Visual Workplace

A work environment where information about processes and standards is communicated through visual means to improve understanding and efficiency.

Normal Time

The amount of time that a task should take under normal working conditions, often used in time studies for setting standard times in manufacturing or work scheduling.

Average Observed Time

The mean time recorded across multiple observations or instances of a specific task or process.

Labour Standards

Regulations and criteria relating to the treatment, pay, and conditions of work for employees.