Which of the following statements regarding the accrual method of accounting is incorrect ?

A A deposit that guarantees the customers payment of amounts owed to the creditor is an advance payment. B An accrual basis taxpayer can deduct expenses owed to a related cash basis taxpayer as soon as the expenses are properly accrued even though the payment is not made until a subsequent tax year. C Expenses are not deductible until all events have occurred that determine the fact of the liability (including economic performance). D Where the right to income is contingent on a future event, an accrual basis taxpayer doesn't have to recognize the income until that event occurs