When Market Exchange Does Not Occur, What Must Happen to Income

question 153

Multiple Choice

When market exchange does not occur, what must happen to income?

• A) Income must be imputed.
• B) Income must be ignored.
• C) Income must be taxed.
• D) Income must be included the following year.
• E) Income must be depreciated.

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Definitions:

NSF Check

A check that has been returned without being honored due to insufficient funds in the account it was drawn against.

Petty Cash Fund

A small amount of cash kept on hand for making immediate payments for miscellaneous, small expenses instead of writing checks.

Replenish

To fill up or restore to a previous level, often used in the context of inventory or supplies.

Internal Control

A process designed to ensure the safety and efficiency of the financial operations of a company, along with compliance with laws and accuracy in reporting.