Cash Received by an Individual

question 70

Multiple Choice

Cash received by an individual:

• A)Is not included in gross income if it was not earned.
• B)Is not taxable unless the payor is legally obligated to make the payment.
• C)Must always be included in gross income.
• D)May be included in gross income although the payor is not legally obligated to make the payment.
• E)None of the above.

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Definitions:

Industrialized Nation

A country characterized by a developed economy with a significant industrial sector, providing a high standard of living for its citizens.

Home Countries

The countries where multinational companies are headquartered or originate from.

Immigration

The process of individuals moving into a new country with the intention of permanent residence.

Total Output

The total amount of goods and services produced by an economy or a firm within a specific period.