Under the Accrual Method,recurring Liabilities May Be Deducted Currently and Paid

question 4

Multiple Choice

Under the accrual method,recurring liabilities may be deducted currently and paid in the next period if all of the following are present except for

• A)the all-events test is met.
• B)the expense is recurring.
• C)the expense is material.
• D)economic performance occurs within the shorter of 8 1/2 months after the close of the year or a reasonable period after the close of the year.

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Definitions:

Transistors

Semiconductor devices used to amplify or switch electronic signals and electrical power.

CPU

The Central Processing Unit, which acts as the primary component of a computer that performs most of the processing inside a computer.

RAM Memory

Random Access Memory, a form of computer memory that can be accessed randomly at any time, used to store working data and machine code.

CPU

The Central Processing Unit, a primary component of a computer that performs most of the processing inside a computer.