_____ 6.A prepaid expense is always capitalized by a cash-basis taxpayer.

Name: _____ 6.A prepaid expense is always capitalized by a cash-basis taxpayer.
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Prepaid expenses are generally capitalized by accrual-basis taxpayers but not always by cash-basis taxpayers. Cash-basis taxpayers can choose to deduct prepaid expenses if they meet specific criteria outlined by the Internal Revenue Service.

_____ 6A Prepaid Expense Is Always Capitalized by a Cash-Basis Taxpayer