In the Case of an Accrual Basis Taxpayer, an Item

question 48

Multiple Choice

In the case of an accrual basis taxpayer, an item of income:

• A) Is not recognized until cash is received.
• B) From services is never recognized until the services are performed.
• C) Is not recognized if the customer can return the goods.
• D) Is recognized when all the events have occurred to fix the taxpayer's right to receive the income and the amount of the income can be determined with reasonable accuracy.
• E) None of the above.

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Definitions:

Blood Pressure Screenings

Medical tests to measure the force of blood against the walls of the arteries, used to identify hypertension and assess risk for heart disease and stroke.

Physical Activity

Any bodily movement produced by skeletal muscles that require energy expenditure, including activities undertaken while working, playing, carrying out household chores, traveling, and engaging in recreational pursuits.

Muscles

Tissues in the body that have the ability to contract, making movement possible.