If an Account Receivable Written Off During a Prior Year

question 74

True/False

If an account receivable written off during a prior year is subsequently collected during the current year, the amount collected must be included in the gross income of the current year to the extent it created a tax benefit in the prior year.

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Definitions:

Evolutionary Theorists

Scholars and scientists who study how evolutionary principles explain behavioral, physical, and psychological traits and changes over time.

Fear Response

A psychological and physiological reaction to perceived threats, involving the activation of the fight-or-flight response.

Psychodynamic

A psychological perspective that focuses on the dynamic interplay between conscious and unconscious processes in shaping personality.

Exposure Therapy

A psychological treatment method that involves confronting fears directly and in a controlled manner to reduce the fear response over time.