Which of the Following Is Not a Necessary Condition for Income

question 106

Multiple Choice

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

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

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Definitions:

Profit-Maximizing Price

The pricing point at which a firm can achieve the highest possible profit, given the demand and cost conditions.

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Per Capita Income

measures the average income earned per person in a given area within a specified year.

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The additional income received from selling one more unit of a good or service, crucial for decision-making in production levels.