Match Each Statement with the Correct Term Below

question 97

Multiple Choice

Match each statement with the correct term below.
-Capital Recovery Concept

• 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.

---

Definitions:

Editing Photos

The process of altering images to improve their quality, composition, or to adjust elements such as brightness and contrast.

Photos app

A digital image organizer and editor included with Microsoft Windows, designed for managing and editing photos.

Custom Albums

Personalized collections of photographs or media, organized according to user preferences.

Slide Show

A presentation format where a series of images, texts, or other visuals are displayed sequentially, often for illustrative or educational purposes.