The all$-$events test generally requires businesses receiving advance payments for services to recognize the income when they receive the payment, rather than when they perform the service. Which of the following statements is INCORRECT regarding this rule?Multiple choice question.This rule holds for prepayment of interest or rent.The tax authorities give the business the option to report the income in the current year or defer it to the period in which the revenue is earned.For financial accounting, the prepayment is recorded as a liability and not recognized as income until the service is performed.The IRS provides an exception that allows the recognition of the advance payment of services to be deferred to the tax year following the prepayment.