An Advance Payment Received in June 2016 by an Accrual

question 16

True/False

An advance payment received in June 2016 by an accrual basis and calendar year taxpayer for services to be provided over a 36-month period can be spread over four tax years.

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Definitions:

Diminishing Returns

Diminishing returns is an economic principle stating that as one factor of production increases while others are held constant, the additional output (returns) from the increased factor will eventually decrease.

Free Ride

Benefiting from a service or good without having to bear the cost or effort of obtaining it, usually in the context of public goods.

Illegal File Sharing

The unauthorized distribution of digital content, such as music, movies, or software, over the internet.

Digital Piracy

Digital piracy is the illegal copying, distribution, or use of digital media, such as software, music, movies, and video games, without authorization or payment to the copyright holder.