Constructive Receipt Requires an Accrual Basis Taxpayer to Recognize Income

question 77

True/False

Constructive receipt requires an accrual basis taxpayer to recognize income when the taxpayer has an unrestricted right to a payment that is to be received.

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Definitions:

Financial Media

Media outlets and platforms that specialize in reporting news and analysis on the financial and economic sectors, including markets and investments.

Unlimited Liability

A legal structure where business owners are personally responsible for all of the business's debts, without any limit.

Limited Life

Denotes that a product, entity, or project has a preset endpoint or duration after which it will cease to exist or need to be substantially changed.

Intrinsic Value

The actual, fundamental worth of an asset, investment, or company, based on underlying perceptions of its true value.