Short Answer Questions 1 - 5. Answer the following questions. 10.1 When is the cash basis available to a business? 10.2 How are lay-by sales treated for income tax? 10.3 What special rules apply to the assessability and deductibility of discounts? 10.4 When is a loss or outgoing incurred? What determines this? 10.5 Can taxpayers elect to adopt cash or accrual accounting each year to produce the lowest tax payable? Why or why not? 10.6 When is income assessable for income tax purposes? Income is assessable when it is derived. 10.7 When are expenses deductible for income tax purposes? 10.8 Briefly describe the two methods of accounting for income tax. 10.9 Explain what is meant by constructive receipt of income. 10.10 Penguin Coolers had an opening Debtors balance of $11,000 at 1 July 2019 and a closing balance of $34,000 at 30 June 2020. Cash received from cash sales and debtors for the year of income was $246,000. All amounts are net of GST. Calculate assessable income for the year ended 30 June 2020 using the: (a) Cash basis. (b) Accruals basis