Under both the cash and accrual method of accounting for tax purposes, a taxpayer may elect to defer prepaid revenue.

Name: Under both the cash and accrual method of accounting for tax purposes, a taxpayer may elect to defer prepaid revenue.
Brand: Quizplus
Rating: 5.0 (38 reviews)

Question

Quizplus · Accepted Answer

Under the cash method, income is recognized when received, so prepaid revenue cannot be deferred. Under the accrual method, taxpayers may defer prepaid revenue if they meet specific criteria set by the IRS.

Under Both the Cash and Accrual Method of Accounting for Tax