Multiple Select Question

Select all that apply

Which of the following statements are correct regarding the requirements to meet the economic performance test under the various ways a liability can arise?

When a business agrees to provide services to another party, the expenses incurred for those services cannot be deducted until the payment is made.

Certain liabilities, such as rebates, refunds, and workers compensation payments, must be deducted when paid regardless of when the liability arises,

When a business agrees to pay another party for services, the deduction is taken as the other party provides the services.

When a business prepays on a lease or rental agreement, the deduction is taken when the payment is made.