Accrual-Method Corporations Cannot Deduct Charitable Contributions Until They Actually Make

question 67

True/False

Accrual-method corporations cannot deduct charitable contributions until they actually make payment to the charity.
The deduction is allowed in the year authorized provided the payment is made within 3½ months after year-end.

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Definitions:

Cost of Goods Sold

The immediate expenses linked to the creation of products a business sells, comprising both material costs and labor charges.

Sales

Sales refer to the total amount of goods or services sold by a company within a specific period, generating revenue.

Inventory System

The set of policies and controls that monitors and manages every aspect of a company's inventory, from purchasing to production to sales.

Accounting Record

Documentation and books that record all financial transactions of a business, essential for preparing financial statements and tracking financial performance.