In Which of the Following Circumstances Would a Cash Basis

Multiple Choice

In which of the following circumstances would a cash basis taxpayer be required to account for an item of income or deduction under the accrual method of accounting?

A) Alice receives advance payment for services that she will perform and complete by the end of the following tax year.
B) Ben paid his business property taxes at year-end even though they were not due until the end of January.
C) Cheryl received six months of pre-paid rent on her rental property just before the end of the year.
D) Donald prepaid a one-year service contract on his copy machine just before year-end.
E) A cash basis taxpayer will not be required to use the accrual basis method of accounting in any of the above circumstances.