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P2-U02 · PART 2 · SOURCE CYCLE 2026-2027

Accounting Periods and Methods

Practice mapped questionsTake Part 2 mock

Only cards whose complete question and answer were checked against exact primary-authority evidence appear here.

Q1.Alder receives a valid client check on December 30 but deposits it in January. When is it generally income?

In the year the valid check was received

Q2.Alder uses the accrual method. When is income generally reported?

In the year it is earned

Q3.Alder chooses a 12-month accounting period ending November 30. What type of tax year is this?

A fiscal tax year

Q4.Which form is filed to change the accounting method used for inventory?

Form 3115

Q5.When does a cash-method business generally include an income item?

When it is actually or constructively received during the tax year