One Criterion Which Will Permit a Deduction for an Expenditure

question 1299

True/False

One criterion which will permit a deduction for an expenditure by the accrual- basis taxpayer prior to economic performance is that either the amount is not material or the earlier accrual of the item results in a better matching of income and expense.

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Definitions:

Morphogenesis

The biological process that causes an organism to develop its shape, a critical aspect of embryonic development and regeneration.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the fetus while removing waste products.

Chorion

Outermost extraembryonic membrane of amniotes; major component of the placenta in placental mammals.