One of the Requirements That Must Be Met in Order

question 368

Multiple Choice

One of the requirements that must be met in order to defer recognition of income for advance payments for goods is

• A) the goods are produced in the United States.
• B) the goods are on the taxpayer's premises on the last day of the tax year.
• C) the taxpayer's method of accounting for the sale for tax purposes is the same as the method used for financial reporting purposes.
• D) the amount received is more than the taxpayer's cost of the goods.

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across American jurisdictions.

Priority Rule

A principle used to establish the order of importance or precedence among several claims or interests against the same asset or legal right.

Artisan's Lien

A legal claim allowing a worker or service provider to retain possession of a client's property until payment for services rendered on that property is received.

Involuntarily

Occurring without the person's willing agreement or consent.