Which of the Following Is Unnecessary to Allow an Accrual-Method

question 105

Multiple Choice

Which of the following is unnecessary to allow an accrual-method corporation to deduct charitable contributions before actually paying the contribution to charity?

• A) Approval of the payment from the board of directors.
• B) Approval from the IRS prior to making the contribution.
• C) Payment made within three and one-half months of the tax year-end.
• D) All of the choices are necessary.

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Definitions:

Human Resources Department

The division within a business that manages employee relations, recruitment, training, and benefits.

Employment

A relationship between an employer and an employee where the employee provides labor in exchange for compensation under agreed terms.

Warranty Expense

Costs anticipated by a company for the repair or replacement of defective products during the warranty period, treated as a liability until used.

Estimated Cost

A projection or forecast of the total costs associated with completing a project, manufacturing a product, or providing a service.