Due to a Shortage of Cash,East Coast Entertainment Company,an Accrual

question 62

Multiple Choice

Due to a shortage of cash,East Coast Entertainment Company,an accrual basis taxpayer,could not pay its November 2016 utility bill on time.In February of 2017,East Coast Entertainment pays the utility bill.
I.East Coast can deduct the expense on either its 2016 or 2017 tax return.
II.East Coast cannot deduct the utility expense in 2016 because it is paid in 2017.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Little Talking

The practice of minimal verbal communication, focusing instead on brevity and directness in conversation or negotiation.

Benefits Unimportant

A perspective or situation where the advantages or positive outcomes of a product or service are undervalued or ignored by the customer or client.

Memorized Sales Presentation

A method of selling in which the sales pitch is precisely scripted for the salesperson.

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The process of engaging potential customers through phone calls with the aim of promoting products or services and securing sales.