Poole Company,a Calendar Year Taxpayer,incurred $589 of Long-Distance Telephone Charges

question 63

True/False

Poole Company,a calendar year taxpayer,incurred $589 of long-distance telephone charges in December 2019 and mailed a check to the telephone company on January 4,2020.If Poole is a cash basis taxpayer,it reports a $589 tax deduction in 2020.

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Definitions:

Productivity

A measure of the efficiency of production, often quantified as the ratio of output to input in the production process.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given time period.

Resource

Assets, materials, or valuable items that are available to be used to produce goods or services.

Derived Demand

The demand for a good or service resulting from the demand for another good or service, as seen in the demand for raw materials driven by the production of final goods.