For Purposes of Determining Gross Income, Which of the Following

question 110

Multiple Choice

For purposes of determining gross income, which of the following is true?

• A)A mechanic completed repairs on an automobile during the year and collects money from the customer.The customer was not satisfied with the repairs and sued the mechanic for a refund.The mechanic can defer recognition of the income until the suit has been settled.
• B)A taxpayer who finds a wallet full of money is not required to recognize income because someone will eventually ask for the return of the money.
• C)Embezzlement proceeds are included in the embezzler's gross income because the embezzler has an obligation to repay the owner.
• D)All of the above are true.
• E)None of the above is true.

---

Definitions:

Canada Health Act

The piece of Canadian federal legislation that sets the conditions and criteria for health care insurance plans that provinces and territories must meet to receive federal transfer payments.

Low-Fat, Low-Salt

A dietary approach aimed at reducing the intake of fats and sodium to prevent health issues such as heart disease and hypertension.

Dietician

A healthcare professional who specializes in nutrition and dietary planning to promote health and manage diseases.

Hospice Palliative Care

Care designed to provide comfort and support to patients and their families during a life-limiting illness, with a focus on quality of life rather than cure.