Jim Operates His Business on the Accrual Method, and This

question 110

Multiple Choice

Jim operates his business on the accrual method, and this year, he received $4,000 for services that he intends to provide to his clients next year. Under what circumstances can Jim defer the recognition of the $4,000 of income until next year?

• A)Jim can defer the recognition of the income if he absolutely promises not to provide the services until next year.
• B)Jim must defer the recognition of the income until the income is earned.
• C)Jim can defer the recognition of the income if he has requested that the client not pay for the services until the services are provided.
• D)Jim can elect to defer the recognition of the income if the income is not recognized for financial accounting purposes.
• E)Jim can never defer the recognition of the prepayments of income.

Comprehend the importance of collaborative assessment and its focus on client needs.

Grasp the concepts of test validity and reliability in assessments.

Learn about various visual and traditional tools used for illustrating connections and assessments in a client's life.

Analyze and select appropriate assessments for clients based on their unique situations and needs.

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Definitions:

Responsibility

The state or fact of having a duty to deal with something or of having control over someone, often involving accountability and ethical obligations.

Allegory of the Cave

The Allegory of the Cave is a theory put forward by Plato, concerning human perception and knowledge, suggesting that people are trapped in a world of illusions and need intellectual enlightenment to perceive reality.

Plato

An ancient Greek philosopher, a student of Socrates and teacher of Aristotle, whose writings are foundational in Western philosophy.

Philosophers

Thinkers who specialize in pondering the nature of the universe, existence, knowledge, values, reason, mind, and language.