Which of the Following Is Not Required for an Accrual

question 16

Multiple Choice

Which of the following is not required for an accrual method taxpayer to currently deduct the cost of services received?

• A)The liability must be paid.
• B)The existence of a liability must be established.
• C)The amount of the liability is determined with reasonable accuracy.
• D)The services must actually be provided.

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Definitions:

Normal Time

Refers to the average time in which a task or operation is expected to be completed under normal circumstances.

Performance Rating Factor

A multiplier used to adjust standard time based on the worker's performance to establish fair time standards in work measurement.

Standard Time

The established amount of time required to perform a task under normal conditions, often used for planning and scheduling purposes.

Labour Content

The total amount of work required to produce a good or service, often measured in terms of time or labor hours.