Which of the Following Payments Received on December 31,2017,would Be

question 10

Multiple Choice

Which of the following payments received on December 31,2017,would be recognized by a cash basis taxpayer in 2017,but would not be recognized in 2017 by an accrual basis taxpayer?
I.Checks received from customers for services rendered during November and December 2017.The checks are deposited in the bank account on January 4,2018.
II.Checks received from customers for services to be rendered during 2018.The checks are received in the morning mail and deposited in the bank account on December 31,2017.
III.A check received from a customer for a service contract.The services under the contract are to be rendered over 24 months,beginning in January 2018.The check is deposited in the bank account on January 4,2017.
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• A)Only statement I is correct.
• B)Only statements I and II are correct
• C)Only statement III is correct.
• D)Only statements II and III are correct.
• E)Only statement II is correct.

Identify the primary components of personal income in the United States.

Understand the structure and significance of transfer programs at the federal level.

Recognize the role and forms of property income.

Comprehend the concept and implications of the Lorenz curve and Gini coefficient in measuring income distribution.

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