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NEW QUESTION: 1
A. Option A
B. Option B
C. Option C
D. Option D
Answer: C
NEW QUESTION: 2
Which one of the following will result in an accruable expense for an accrual-basis taxpayer?
A. A repair completed prior to year end and paid upon completion.
B. A repair completed prior to year end but not invoiced.
C. An invoice dated prior to year end but the repair completed after year end.
D. A signed contract for repair work to be done and the work is to be completed at a later date.
Answer: B
Explanation:
Explanation
RULE: An accruable expense is one is which the services have been received/performed but have not
been paid for by the end of the reporting period.
Choice "b" is correct. The facts indicate that a repair was completed prior to year end but not yet invoiced.
If it has not yet been invoiced, it is assumed that it has also not yet been paid for. Therefore, this is a
situation in which the repair expense would be accrued at year end. Services have been performed, but
they have not been paid for, as they have not even been invoiced yet.
Choice "a" is incorrect. If the repair was completed after year end, then the expense is not accruable, as
the benefit of the services hasn't been received as of year end. The fact that the repair was invoiced prior
to year end does not impact the situation.
Choice "c" is incorrect. If a repair was completed and paid for prior to year end, no accrual is appropriate.
On the accrual basis, the expense is taken in the year the repair is completed and the benefit is received.
In this case, the account payable was also paid in the same year, but this has no effect on the expense.
Choice "d" is incorrect. The facts indicate that the work is to be completed at a date later than year end.
Therefore, the expense is not accruable at year end, as the benefit of the repair hasn't been received as of
year end. It is reasonable that a signed contract for the repair work exists, but this has no effect on the
accrual.
NEW QUESTION: 3
HOTSPOT
Click in the screen shown to select the feature that will allow you make bulk changes to your ads:
Hot Area:
Answer:
Explanation:
NEW QUESTION: 4
You have a project in Azure DevOps that uses packages from multiple public feeds. Some of the feeds are unreliable.
You need to consolidate the packages into a single feed.
Which three actions should you perform in sequence? To answer, move the appropriate actions from the list of actions to the answer area and arrange them in the correct order.
Answer:
Explanation:
Explanation