Under the Accrual Method,recurring Liabilities May Be Deducted Currently and Paid

question 4

Multiple Choice

Under the accrual method,recurring liabilities may be deducted currently and paid in the next period if all of the following are present except for

• A)the all-events test is met.
• B)the expense is recurring.
• C)the expense is material.
• D)economic performance occurs within the shorter of 8 1/2 months after the close of the year or a reasonable period after the close of the year.

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Definitions:

Human Resources Department

An organizational unit that focuses on recruiting, managing, and directing people in an organization, including overseeing various aspects of employment, such as compliance with labor law and employment standards.

Insurance Company

A financial institution that offers various forms of insurance coverage to protect individuals and businesses against risk.

Programmed Instruction

A method of self-learning through the use of instructional materials that are segmented into small units, each of which is followed by a test.

On-The-Job Training

A hands-on method of teaching the skills, knowledge, and competencies needed for employees to perform a specific job within the workplace.