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:

Terraces

Flat or stepped surfaces carved into landscapes by natural processes like erosion or by human activities in agriculture or building.

Superposition

A principle stating that in an undisturbed sequence of sedimentary layers, each layer is younger than the one below it and older than the one above it.

Incising

Incising is the process by which a river or stream cuts down into its bed, deepening the channel through the erosion of sediment and rock.

Delta

A landform created by the deposition of sediment carried by a river as the flow leaves its mouth and enters slower-moving or stagnant water.