Match Each Statement with the Correct Term Below

question 105

Multiple Choice

Match each statement with the correct term below.
-Realization

• 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:

Duchenne Muscular Dystrophy

A genetic disorder characterized by progressive muscle degeneration and weakness due to the alteration of a protein called dystrophin that helps keep muscle cells intact.

Sex-Linked Abnormality

Genetic disorders that are determined by the genes located on the sex chromosomes, often leading to diseases or conditions manifesting differently in males and females.

Down's Syndrome

A genetic disorder caused by the presence of all or part of a third copy of chromosome 21, characterized by physical growth delays, characteristic facial features, and mild to moderate intellectual disability.

Parents

Individuals who act as guardians or caretakers for children, providing emotional, physical, and social support.