With Respect to the Unearned Income from Services, Which of the Following

question 14

Multiple Choice

With respect to the unearned income from services, which of the following is true?

• A)The treatment of unearned income is the same for tax and financial accounting for both cash and accrual basis taxpayers.
• B)A cash basis taxpayer must report all of the income in the year received.
• C)An accrual basis taxpayer can spread the income over the period services are to be provided if all of the services will be completed within three years following the year of receipt.
• D)An accrual basis taxpayer can spread the income over the period services are to be provided on a contract for three years or less.
• E)None of these.

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Definitions:

BIOS

Basic Input/Output System, firmware used to initialize hardware during the booting process and provide runtime services for operating systems.

Configurations

Settings or parameters defining how a system or device is set up.

Windows Operating System

A family of graphical operating systems developed, marketed, and sold by Microsoft, used widely on personal computers and servers.

Kernel

The core component of a computer's operating system that manages communications between hardware and software.