11. [LO 4] Q20 Why does the law generally require partnerships to adopt a tax year consistent with the year used by the partners?

12. [LO 5] Q22 Explain when an expenditure should be capitalized rather than expensed based upon accounting principles. From time to time, it is suggested that all business expenditures should be expensed for tax purposes. Do you agree with this proposition, and if so, why? Chapter 9 Business Income, Deductions, and Accounting Methods Page 2 of 2

13. [LO 5] Q25 Why is it not surprising that specific rules differ between tax accounting and financial accounting?

14. [LO 5] Q27 Describe the all-events test for determining income and describe how to determine the date on which the all-events test has been met.

15. [LO 5] Q32 Compare and contrast financial accounting rules with the tax rules under UNICAP (263A). Explain whether the UNICAP rules tend to accelerate or defer income relative to the financial accounting rules.

16. [LO 5] Q35 Describe what is meant by economic performance and when economic performance occurs for the following expenses: Workers compensation, Rebates and refunds Insurance, warranties, and service contracts provided to the business Taxes

17. [LO 5] Q40 Describe how a business adopts a permissible accounting method. Explain whether a taxpayer can adopt an impermissible accounting method.