Which of the Following Statements Regarding Realized Income Is True

question 94

Multiple Choice

Which of the following statements regarding realized income is true?

• A)Taxpayers need not include realized income in gross income unless a specific provision of the tax code requires them to do so.
• B)Realized income requires some type of transaction or exchange with a second party.
• C)Once income is realized it cannot be excluded from gross income.
• D)None of these statements are true.

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Definitions:

Continuous

Describes an unbroken or uninterrupted sequence or extent of something, often referring to processes, functions, or variables in mathematics or physics.

Intermolecular Forces

Forces of attraction or repulsion which act between neighboring particles (atoms, molecules, or ions) influencing the properties of substances.

Compressible

Describes a characteristic of materials or substances that can have their volume significantly reduced under pressure.

Intermolecular Forces

The forces of attraction or repulsion between molecules, affecting the physical properties of substances, such as boiling point and viscosity.