Under the Accrual Method, Recurring Liabilities May Be Deducted Currently

question 504

Multiple Choice

Under the accrual method, recurring liabilities may be deducted currently and paid in the next period if all of the following are present except for

• A) the all- events test is met.
• B) economic performance occurs within the shorter of 8 1/2 months after the close of the year or a reasonable period after the close of the year.
• C) the expense is recurring.
• D) the expense is material.

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