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.

---

Definitions:

Marisol Escobar

A Venezuelan-American artist known for her wood sculptures and tableaus that combine folk art, pop art, and social commentary.

Self-Portrait

An artistic representation of the artist by themselves, often used as a means of personal expression and exploration of identity.

Jenny Holzer

An American conceptual artist known for her text-based public art projects that explore themes of power, violence, oppression, and empathy.

1989 Installation

An art installation or work created in the year 1989, possibly signifying works with historical or cultural significance from that period.