Under the cash method of accounting,payment by credit card entitles the taxpayer to deduct the expenditure at the time the charge is made.

Question

Quizplus · Accepted Answer

According to the cash method of accounting, the expenditure is deductible in the year it is paid. If the taxpayer pays for a deductible expense using a credit card, it is considered paid at the time the charge is made, and therefore the expenditure is deductible in that year.

Under the Cash Method of Accounting,payment by Credit Card Entitles