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:

Ethical Violation

A breach of moral principles within a professional context, usually violating established codes of conduct.

Covert Observation

A research method where the subject(s) are unaware they are being observed to gather unbiassed and natural behavior.

Nonparticipant Observation

A research method in which the observer does not interact with the subjects during the observation period.