Mars Uses the Cash Basis of Accounting and Is a Calendar

question 45

Multiple Choice

Mars uses the cash basis of accounting and is a calendar year firm. On December 31, 2012, it mailed checks in payment of expenses. fte checks were not cashed until January 2013. Mars may take a deduction for these expenses in:

• A) 2012
• B) 2013
• C) either 2012 or 2013, whichever it chooses
• D) no deduction is permitted until the expenses are incurred

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Definitions:

Pain

A distressing experience involving both sensation and emotion, stemming from existing or prospective damage to tissue, or expressed through descriptions of such damage.

Hearing

The sense and physiological process of perceiving sounds through the ears.

Smell

The sense that detects odors through the olfactory system, playing a crucial role in human perception and interaction with the environment.

Basilar Membrane

A key structure in the cochlea of the inner ear, which plays a critical role in the sense of hearing by vibrating in response to sound.