Final answer:
True, an accrual basis taxpayer can deduct expenses by applying the economic performance and all events tests, in line with the accrual accounting method which records expenses when they are incurred, rather than when payment is made.
Step-by-step explanation:
The statement that the period in which an accrual basis taxpayer can deduct an expense is determined by applying the economic performance and all events tests is true. Under the accrual method of accounting, expenses are matched with the related revenues and are recorded when the transaction occurs rather than when payment is made or received.
The economic performance test requires that the services or property in question have been provided or used, and the all events test mandates that all events have occurred which determine the fact of the liability, and the amount can be determined with reasonable accuracy.