Benita incurred a business expense on December 10, 2018, which she charged on her bank credit card. She paid the credit card statement which included the charge on January 5, 2019. Which of the following is correct?

Question

Quizplus · Accepted Answer

Under the accrual method, expenses are deductible in the year they are incurred, regardless of when they are paid. Since Benita incurred the expense in 2018, she can deduct it in 2018 if she is an accrual method taxpayer.

Benita Incurred a Business Expense on December 10, 2018, Which