One Criterion Which Will Permit a Deduction for an Expenditure

question 1299

True/False

One criterion which will permit a deduction for an expenditure by the accrual- basis taxpayer prior to economic performance is that either the amount is not material or the earlier accrual of the item results in a better matching of income and expense.

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Definitions:

Statistical Inference

The process of using data analysis to deduce properties of an underlying probability distribution.

Estimate

An approximation or educated guess of a certain quantity based on available data.

Population

The entire group or set of items or individuals from which samples may be drawn for statistical analysis.

Statistical Inference

The process of making predictions or decisions about a population based on sample data.