The full-inclusion method requires cash-basis taxpayers to include prepayments for goods or services into realized income.

Name: The full-inclusion method requires cash-basis taxpayers to include prepayments for goods or services into realized income.
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

The full-inclusion method requires accrual-basis taxpayers to include prepayments for goods or services into realized income, not cash-basis taxpayers. Cash-basis taxpayers only recognize income when it is received, not when it is earned.

The Full-Inclusion Method Requires Cash-Basis Taxpayers to Include Prepayments for Goods