Sergio Purchases $3,000-Worth of Supplies from a Local Vendor

question 21

Multiple Choice

Sergio purchases $3,000-worth of supplies from a local vendor. The supplies are delivered on April 1, 2018. The supplies are fully used up on December 31, 2018. Because of unusual circumstances, a bill for the supplies arrives from the vendor on February 1, 2019, and is promptly paid. When can Sergio deduct the expenses?
I.In 2018, if he is an accrual basis taxpayer.
II.In 2018, if he is a cash basis taxpayer.
​

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

---

Definitions:

Monetary Rewards

Financial incentives provided to employees as a form of compensation or recognition for their work.

Ethical Protocols

Guidelines designed to ensure behavior and decisions align with moral and professional standards.

Visibility

Refers to the degree to which work or actions are seen or recognized by others in an organization, often affecting career opportunities and perceptions of performance.

Ingratiation

A psychological technique aimed at making oneself more likable to others through flattery or other means of manipulation to gain favor or approval.