Which of the Following Is Not a Necessary Condition for Income

question 120

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:

Efficient Production

A process that maximizes output with the minimum amount of input, using resources in the most effective manner to achieve the highest level of productivity.

Tariff Revenue

Income generated by a government from imposing import taxes on goods brought into the country.

Domestic Price

The price of goods or services within a country's borders, influenced by local supply and demand conditions.

Free Trade

refers to international trade left to its natural course without tariffs, quotas, or other restrictions.