Match Each Statement with the Correct Term Below

question 48

Multiple Choice

Match each statement with the correct term below.
-Recognition

• A)Taxpayer reports income when received in cash or its equivalent and takes deductions as they are paid.
• B)A deduction taken in one year that is recovered in a later year is reported as income in the year of recovery to the extent that the deduction reduced taxable income.
• C)Taxpayer reports income as earned and deductions as incurred.
• D)The result of an arms-length transaction.
• E)Exclusions and deductions result from specific acts of Congress that must be strictly applied and interpreted.
• F)The taxability of a transaction is determined by the reality of the transaction rather than some contrived appearance.
• G)The reporting of an item of income or expense on a tax return
• H)No income is realized until the taxpayer's invested capital is recovered.
• I)All income received is taxable unless some specific provision of the tax law allows exclusion of the item.
• J)These taxpayers are not deemed to transact at arms-length.

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Definitions:

Visual System

The part of the central nervous system which enables organisms to process visual detail, and includes the eye, the optic nerves, and the brain's visual cortex.

Rods

Photoreceptor cells in the retina of the eye that are responsible for vision at low light levels but do not mediate color vision.

Peripheral Vision

The part of vision that occurs outside the very center of gaze, allowing humans to perceive objects and movements at the edges of their visual field.

Rod Cells

Photoreceptor cells in the retina of the eye that are responsible for vision at low light levels and are not involved in color vision.