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turn over upload - Assignment ExampleTax returns, copies thereof, or other records may be sufficient to hit the use of the method of accounting used in the preparation of the taxpayers income tax returns(i)Cash receipts and disbursements method.Generally, low the cash receipts and disbursements method in the computation of taxable income, all items which constitute gross income (whether in the form of cash, property, or services) are to be included for the taxable year in which actually or constructively conform tod. Expenditures are to be deducted for the taxable year in which actually made. For rules relating to constructive receipt, see 1.451-2. For word of an expenditure attri exactlyable to more than one taxable year, see section 461(a) and paragraph (a)(1) of 1.461-1.(ii)Accrual method.(A) Generally, below an aggregation method, income is to be included for the taxable year when all the events have occurred that fix the right to receive the income and the amount of the i ncome can be determined with reasonable accuracy.Except as provided in section 5.02(2) of this tax procedure for certain short taxable years, this revenue procedure does not permit deferral to a taxable year later than the next succeeding taxable yearThe court, distinguishing from the holding in Schlude v. Commissioner, held that accrual method taxpayers are not required to include prepayments in gross income when there is certainty as to when performance would occur.Verdict the Court held that, under the accrual method, taxpayers must include as income in a particular year advance payments by way of cash, negotiable notes, and contract installments falling due but remaining unpaid during that year.Verdict It was held that the Commissioner of Internal Revenue did not abuse his discretion in find out that the prepaid dues were taxable as income in the year in which they were actually received and in rejecting