Mars uses the cash basis of accounting and is a calendar year ﬁrm. On December 31, 2012, it mailed checks in payment of expenses. fte checks were not cashed until January 2013. Mars may take a deduction for these expenses in:

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Prepaying nonrefundable commissions will produce a deduction in the year of prepayment (2001). ftis will reduce income in 2001, which is not Jones Company's objective

Mars Uses the Cash Basis of Accounting and Is a Calendar