In the Case of an Accrual Basis Taxpayer, an Item

question 87

Multiple Choice

In the case of an accrual basis taxpayer, an item of income:

• A)Is not recognized until cash is received.
• B)From services is never recognized until the services are performed.
• C)Is not recognized if the customer can return the goods.
• D)Is recognized when all the events have occurred to fix the taxpayer's right to receive the income and the amount of the income can be determined with reasonable accuracy.
• E)None of these.

---

Definitions:

Efferent

Referring to nerve fibers that carry impulses away from the central nervous system to effectors (such as muscles or glands).

Afferent

Relating to or denoting nerve fibers that carry sensory information toward the central nervous system.

Central

Being at the most important or core position; of primary importance or relevance.

Sensory

Pertaining to the senses or sensation.