Which of the Following Is Not Required for an Accrual

question 16

Multiple Choice

Which of the following is not required for an accrual method taxpayer to currently deduct the cost of services received?

• A)The liability must be paid.
• B)The existence of a liability must be established.
• C)The amount of the liability is determined with reasonable accuracy.
• D)The services must actually be provided.

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Definitions:

Purchase Order

An official document issued by a buyer committing to pay the seller for the supply of specific goods or services.

Signed

Marked with a signature to show agreement, consent, or acknowledgement.

Act of God

An event caused by natural forces beyond human control, such as earthquakes, floods, or hurricanes, that is not the fault of any individual.

Unconditionally Appropriated

refers to funds or assets that have been allocated without any conditions or restrictions for their use.