Which of the Following Is Not a Necessary Condition for Income

question 92

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 the choices are correct.

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Definitions:

Year-End

The conclusion of a fiscal year, marking the cutoff for financial reporting and the beginning of financial statement preparation for that period.

Invoice Price

The price listed on an invoice, representing the amount charged by the seller to the buyer for goods or services.

Settlement Date

The date on which a trade is finalized or settled, with the transfer of securities and cash between buyer and seller.

Liability Record

Documentation or entries that list the obligations or debts of a business that it must repay to others.