Indicate Which of the Following Statements Is/are Correct

question 96

Multiple Choice

Indicate which of the following statements is/are correct:
I.An accrual basis taxpayer who gives a creditor his note payable in payment of a claim may deduct the related expense when the note is given.
II.When a cash basis taxpayer uses a credit card to pay for an expense it can deduct the expense when the expense is charged to the credit card..
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Phosphate

A chemical compound that contains the phosphate ion (PO4^3-), which is essential in biological systems for energy transfer and storage.

Intracellular Buffer System

Mechanisms within cells that regulate pH levels, preventing significant variations that could otherwise interfere with cellular function.

Sodium-Potassium Pump

A cellular mechanism that moves sodium ions out of and potassium ions into a cell against their concentration gradients, essential for cellular functions.

Carbonic Acid/Bicarbonate System

A major buffer system in the blood, maintaining the body's pH balance by regulating carbon dioxide (CO2) and bicarbonate (HCO3-) levels.