With Respect to Income from Services,which of the Following Is

question 10

Multiple Choice

With respect to income from services,which of the following is true?

• A)The income is always amortized over the period the services will be rendered by an accrual basis taxpayer.
• B)A cash basis taxpayer can spread the income from a 24-month service contract over the contract period.
• C)If an accrual basis taxpayer sells a 36-month service contract on July 1,2015 for $3,600,the taxpayer's 2015 gross income from the contract is $600.
• D)If an accrual basis taxpayer sells a 24-month service contract on July 1,2015,one-half (12/24) the income is recognized in 2016.
• E)None of these.

---

Definitions:

Supervisors

Individuals within an organization responsible for overseeing and guiding the performance of a group of employees, ensuring tasks are completed effectively.

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution to a problem.

Criticize

To express disapproval of someone or something based on perceived faults or mistakes.

Self-Directed Work Teams

Denotes groups of employees who are given autonomy to plan, execute, and manage their own tasks and responsibilities without traditional managerial supervision.