Inconsistencies Between the Tax and Financial Methods of Accounting for Advanced

Inconsistencies between the tax and financial methods of accounting for advanced payments for goods received by an accrual basis taxpayer normally do not occur because

A) The goods for which the payment is made are normally on hand at year end.
B) The payments received are "substantial" (i.e., they exceed the cost of the goods to be sold) .
C) Delivery of the goods normally occurs within a short period after the payments become substantial.
D) According to the Internal Revenue Code, tax methods of accounting for advance payments must be in conformity with financial methods (GAAP) .