Which of the Following Is Unnecessary to Allow an Accrual-Method

question 82

Multiple Choice

Which of the following is unnecessary to allow an accrual-method corporation to deduct charitable contributions before actually paying the contribution to charity?

• A) Approval of the payment from the board of directors.
• B) Approval from the IRS prior to making the contribution.
• C) Payment made within two and one-half months of the tax year end.
• D) All of these are necessary.

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Definitions:

Competitive Firm

A company operating in a market where it has to compete with other firms for consumers, and has no power to set the price of its products, leading to market-driven pricing strategies.

Monopolistically Competitive Industry

An industry characterized by many firms offering products or services that are similar, but not perfect substitutes, leading to competitive yet differentiated marketplaces.

Nonprice Competition

Strategies used by companies to attract customers through style, service, or location rather than through lower prices.

Products

Goods or services offered by businesses to meet consumer needs and wants.