Question

Under the accrual method, certain recurring items can be deducted immediately if all of the following conditions are met

a.true
b.false

Answer 1

Under the accrual method, certain recurring items can be deducted immediately if specific conditions are met.

Step-by-step explanation:

Under the accrual method, certain recurring items can be deducted immediately if all of the following conditions are met:

1. The expense is recurring, meaning it occurs regularly and predictably.
2. The expense is ordinary and necessary for the operation of the business.
3. The expense is directly related to the revenue-generating activities of the business.

For example, if a company incurs monthly advertising expenses, it can deduct those expenses immediately under the accrual method if they meet the above conditions.