Tax (Final Exam) Questions & 100% Verified Answers | Latest Update | Already Graded A+

What are the three Accounting periods? : -Calendar yr. -Fiscal year (Ending last day of the month, other than December) -52/53 week What is the method for recognizing income under the accrual method? : All events have occurred and in reasonable amount. When is the all events test met, assuming it can be reasonably determined? : On the earliest of: -Payment for task due from customer -Business receives payment -When completing task required to earn income Businesses must recognize prepayment income from rent and interest immediately upon receipt. T/F : True 2 | P a g e What accounting method must you use for inventory? : Accrual For Accrual deductions, the business must meet what two parts? : -All events test -Economic performance For goods expecting to be received, can deduct as long as goods are received _____ after the payment. : 3.5 months For deducting rental/leasing expenses, deduct _____. : -Ratably What is the recurring item exception? : -Liability expect