1) When can accrual basis taxpayers deduct warranty expense (i.e., the cost to repair an item covered under warranty)?

2). True or False: For accrual basis taxpayers, the timing of the payment of expenses does not matter. All that matters for recognition is when the expense was incurred.

3) True or False: Prepaid rent is deductible immediately when paid for accrual basis taxpayers.

4). When an accrual basis taxpayer is prepaying for a good or service that they are receiving from another party, in what situation can they immediately deduct the payment? In what situation would they have to wait until the expense is incurred in order to deduct?