Briefly Discuss the Two Tests That an Accrual Basis Taxpayer

question 81

Essay

Briefly discuss the two tests that an accrual basis taxpayer must apply before an expense can be deducted.

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Definitions:

Distributions

The way in which values, objects, or events are spread out or dispersed over a range or area.

Members

Individuals or elements that belong to a group, category, or set.

Percentage

A proportion or share in relation to a whole, expressed as a fraction of 100.

Mutually Exclusive

Refers to events or properties that cannot occur or be true at the same time.