Under the accrual method,recurring liabilities may be deducted currently and paid in the next period if all of the following are present except for
A)the all-events test is met.
B)the expense is recurring.
C)the expense is material.
D)economic performance occurs within the shorter of 8 1/2 months after the close of the year or a reasonable period after the close of the year.

Question

Quizplus · Accepted Answer

All of the other options (the all-events test being met, the expense being recurring, and economic performance occurring within the appropriate time frame) are necessary criteria for recurring liabilities to be deducted currently. The expense being material is not a necessary criterion for such deductions.

Under the Accrual Method,recurring Liabilities May Be Deducted Currently and Paid