_____ 4. An accrual-basis taxpayer deducts an expense when the cash is paid even if the service for which the money is paid has not been rendered.

Question

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An accrual-basis taxpayer deducts an expense when it is incurred, regardless of whether the payment has been made or not. The matching principle requires that expenses be matched with the revenues they helped generate, not just when the cash is paid.

_____ 4 an Accrual-Basis Taxpayer Deducts an Expense When the Cash