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.

Recognize the role of a devil's advocate in challenging proposals and strategies.

Explain the phenomena of risky shift and conservative shift in group decision-making.

Know the advantages and disadvantages of group decision making.

Understand the application and implications of using big data and analytics in organizational decision-making.

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Definitions:

Direct Materials

Raw materials that are directly identifiable and assignable to the production of goods.

Factory Overhead

All expenses related to production that aren't direct materials or direct labor costs.

Per-Unit Cost

The cost associated with producing or acquiring a single unit of product.

Finished Goods Account

An inventory account that holds the value of products that are completed and ready for sale.