Episode

Enrolled Agent Exam [Part 1] 95, Recognition of Income - Cash vs Accrual

Podcast
Finance Exam Prep
Published
Apr 20, 2026
Duration seconds
177
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https://open-exam-prep.com/
Audio
https://episodes.captivate.fm/episode/51bb6908-6f5f-4190-87e6-035ba03be747.mp3
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Summary

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • Distinguish between the cash method (income when received) and the accrual method (income when earned). • Identify constructive receipt and when income is considered available without substantial limitation. • Apply the "all-events test" to determine income recognition for accrual-basis taxpayers. • Recognize the special one-year deferral rule for certain prepaid income under the accrual method. • Pinpoint which types of businesses are generally required to use the accrual method for tax purposes. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep