Bart Operates a Sole Proprietorship for Which He Uses the Accrual

question 40

Multiple Choice

Bart operates a sole proprietorship for which he uses the accrual method of accounting.Bart's sister Samantha,a cash method taxpayer,did some advertising work for Bart's business in November 2013.In December,Bart received a billing statement from Samantha for $5,000.Bart paid Samantha the $5,000 in January 2014.Samantha is a calendar year taxpayer.When may Bart deduct the $5,000?

• A)2013
• B)2014
• C)Either 2013 or 2014
• D)The expense is not deductible since Samantha is Bart's sister.

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Definitions:

Stakeholders

Individuals or groups that have an interest in the success and progression of a company, project, or policy.

Experiential Learning Cycle

A model of learning that explains how experience is transformed into knowledge through a cycle of concrete experience, reflective observation, abstract conceptualization, and active experimentation.

Organizational Behavior

A field of study that investigates how individuals, groups, and structure affect behavior within organizations, aiming to apply this knowledge to improve an organization's effectiveness.

Government Representative

An individual who holds a public office or position, acting on behalf of a government body or agency to implement policies, represent governmental views, or interact with the public or other governmental entities.