Accrual-Method Corporations Cannot Deduct Charitable Contributions Until They Actually Make

question 28

True/False

Accrual-method corporations cannot deduct charitable contributions until they actually make payment to the charity.

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Definitions:

After-Tax Cost

The after-tax cost is the net cost of a transaction, investment, or other financial activity after taking into account the effect of taxes.

Debt-Equity Ratio

Measures a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.

Pre-Tax Cost

The expense or cost incurred by an entity before taxes have been deducted.

Unlevered Cost

The cost of an investment or project assuming no debt is used to finance the investment; reflecting its cost of capital without leverage.