Which of the Following Is Not a Necessary Condition for Income

question 16

Multiple Choice

Which of the following is not a necessary condition for income to be included in gross income?

• A)income must be realized
• B)income must be paid in cash
• C)income cannot be excluded by law
• D)income must be made available to a taxpayer on the cash basis
• E)all of these choices are correct.

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Definitions:

Mutually Beneficial Trades

Exchanges that occur when all parties involved gain benefits or profits from the transaction.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total net benefit to society from trade.

Consumer Surplus

The separation between what consumers envisage paying for a good or service and the amount they actually disburse.

Producer Surplus

The gap between the price that sellers are ready to take for a product or service and the actual price they get from the market.