Which of the Following Statements Is False

question 17

Multiple Choice

Which of the following statements is false?

• A)A tax deduction is allowed to a taxpayer for estimated warranty expense.
• B)A tax deduction is allowed in association with a warranty only in the year in which warranty work is performed.
• C)A tax deduction is allowed for a contested amount if the amount is paid prior to final settlement.
• D)No tax deduction is allowed to an accrual-basis taxpayer for the amount of a down payment for a non-recurring expense when the work is to be performed in a subsequent period.

---

Definitions:

Explanandum

The phenomenon or event that is to be explained in scientific inquiry or philosophical argument.

Hypothesis

An assumption made for the sake of argument or investigation.

Logical Strength

The extent to which the premises of an argument support its conclusion, determining how conclusive the argument is.

Informative

Refers to communication or data that provides useful or important information or knowledge.