Jim operates his business on the accrual method and this year he received $4,000 for services...
Jim operates his business on the accrual method and this year he received $4,000 for services that he intends to provide to his clients next year. Under what circumstances can Jim defer the recognition of the $4,000 of income until next year?
Homework Answers
Ans : Jim can elect to defer the recognition of the income if the income is not recognized for financial accounting purpose.
This is possible since accrual method of accounting is followed.
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