Cash Received by an Employee from an Employer

question 59

Multiple Choice

Cash received by an employee from an employer:

• 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 these.

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Definitions:

Retail Companies

Businesses that sell goods directly to consumers, typically operating from physical locations or through online platforms.

Proprietorship

A business owned by one individual.

Personal Assets

Personal assets include all property owned by an individual that has value, such as cash, real estate, investments, and personal belongings.

Liabilities

Financial obligations or debts that a company owes to others, recorded on the right side of the balance sheet.