With Respect to the Prepaid Income from Services, Which of the Following

question 5

Multiple Choice

With respect to the prepaid income from services, which of the following is true?

• A)The treatment of prepaid income is the same for tax and financial accounting.
• B)A cash basis taxpayer can spread the income over the period services are to be provided if all of the services will be completed by the end of the tax year following the year of receipt.
• C)An accrual basis taxpayer can spread the income over the period services are to be provided if all of the services will be completed by the end of the tax year following the year of receipt.
• D)An accrual basis taxpayer can spread the income over the period services are to be provided on a contract for three years or less.
• E)None of these.

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Definitions:

Delay Tactics

Strategies or actions taken to slow down or postpone a process, often used in negotiations or legal contexts to gain an advantage or simply to buy time.

Employers

Individuals or entities that hire people to perform services or work in exchange for compensation.

Union Organizing Campaign

An effort led by a group of workers or a labor union to encourage a workforce to unionize, involving education about rights and the benefits of union representation.

Union Tactics

Diverse strategies and actions utilized by labor unions to further their objectives and protect member interests.