Owners of Pass-Through Entities May Defer Income Recognition by Selecting

question 68

True/False

Owners of pass-through entities may defer income recognition by selecting a different tax year for the business if at least 25% of the business revenues occur during the last two months of the proposed year.

---

Definitions:

Human Needs

Fundamental requirements necessary for individual well-being, including physiological, safety, love/belonging, esteem, and self-actualization needs as described by Abraham Maslow.

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.

McGregor

Refers to Douglas McGregor's Theory X and Theory Y, which describe two contrasting models of workforce motivation and management.

Theory X

Assumes people dislike work, lack ambition, are irresponsible and prefer to be led.