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.

---

Definitions:

Carbide Filament

A type of filament used in light bulbs, made from carbon and tungsten, known for its durability and high melting point.

Past Participle

A grammatical term referring to a form of a verb, typically used to indicate a completed action or condition, often used in perfect tenses.

Water-Soaked Vegetation

Plants that have absorbed an excessive amount of water, often leading to wilting or disease.

Treasure Troves

Collections or finds of valuable objects, often hidden or discovered by chance.