Indicate Which of the Following Statements Is/are Correct

question 12

Multiple Choice

Indicate which of the following statements is/are correct:
I.A cash basis taxpayer may deduct prepaid rent if it will be used-up within one year of prepayment and the payment is required to be made.
II.An accrual basis taxpayer must satisfy an all-events test and an economic performance test to claim a deduction.
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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:

Purulent Drainage

A type of thick, often yellowish fluid that is produced at the site of an infection, indicating the presence of pus.

Pressure Ulcer

A localized injury to the skin and/or underlying tissue, typically over a bony area, as a result of pressure or pressure in combination with shear and/or friction.

Dressing

A sterile pad or compress applied to a wound to promote healing and protect the area from further harm.

Analgesic Medications

Drugs designed to relieve pain without causing the loss of consciousness.