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:

Long-Term Memory

A type of memory capable of storing information for an extended period, sometimes indefinitely, including facts, experiences, and skills.

Distortion

The alteration of the original shape or other characteristic of something, often leading to a misrepresentation of reality.

Cognitive Changes

Refers to alterations in cognitive functions such as memory, problem-solving, and attention span that can occur due to various factors including age, disease, or environmental influences.

Implicit Memory

Automatic memories based on repetition and apparently not requiring any conscious effort to retrieve.