In December 2011,Mary Collected the December 2011 and January 2012

question 13

True/False

In December 2011,Mary collected the December 2011 and January 2012 rent from a tenant.Mary is a cash basis taxpayer.The amount collected in December 2011 for the 2012 rent should be included in her 2012 gross income.

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Definitions:

Net Realizable Value

The estimated selling price in the ordinary course of business minus any costs necessary to make the sale.

LIFO

Last In, First Out, an inventory valuation method where the last items added to inventory are assumed to be the first ones removed, affecting cost of goods sold and inventory value.

Lower-Of-Cost-Or-Market

An accounting principle stating that inventory should be recorded at the lower of its historical cost or its current market price.

LIFO

Last In, First Out, a stock valuation approach that accounts for the most newly manufactured goods as being sold before all others.