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25 questions across the exam sections. You see the answer and a plain-English explanation with its source right after each one. Skipped questions count as incorrect. Each new quiz draws 25 questions at random from all 1,525 in the bank.

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Question 7 of 25

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Business Finances
A contractor uses an accrual method. For 2026, it included a reasonable estimate of $48,000 for a job in its income. In 2027, it learns the exact amount is $50,000. According to IRS Publication 538, how should it report the $2,000 difference?