eBook Tax Drill - Tests for Deductions Indicate whether the following statements are "True" or "False" regarding the all events and economic performance tests for deductions. a. As to when economic performance is met, that depends on the nature of the liability. b. If the taxpayer is obligated to provide property or services, economic performance occurs in the year the taxpayer contracts for the property or services. c. Generally payment is the only means of satisfying economic performance for rebates and refunds. d. The all events and economic performance tests allows the use of reserves for warranties