Which of the Following Constitutes Constructive Receipt in 2013

question 35

Essay

Which of the following constitutes constructive receipt in 2013?
a.A check received on December 29,2013.The check was postdated January 5,2014.
b.A check received on January 4,2014.It had been mailed on December 29,2013.
c.A rent check,received on December 31,2013,by the manager of an apartment complex.The manager normally collects rent for the owner who is out of town.
d.A salary check received at 5:30 p.m.on December 31,2013,after all banks are closed.
e.A paycheck received on December 26,2013.The check was not honored by the bank because the employer's account did not have sufficient funds

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Definitions:

Retained Earnings

Retained earnings represent the cumulative amount of net income that a company has reinvested into the business rather than distributed to shareholders as dividends.

Fair Value Method

An accounting approach that measures and reports certain assets and liabilities at their estimated current market values.

Intrinsic Value Method

A technique used to calculate the actual value of a company or asset based on its fundamental, underlying value.

GAAP

Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures that companies in the U.S. use to compile their financial statements.