If an Account Receivable Written Off During a Prior Year

question 74

True/False

If an account receivable written off during a prior year is subsequently collected during the current year, the amount collected must be included in the gross income of the current year to the extent it created a tax benefit in the prior year.

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Definitions:

Sampling Distribution

The probability distribution of a statistic obtained through a large number of samples drawn from a specific population.

Proportion

A statistical measure that represents the fraction of the total number of outcomes that share a particular attribute or characteristic.

Simple Random Sample

A subset of individuals chosen from a larger set where each member has an equal chance of being selected.

Undergraduates

Students pursuing their first degree in a higher education institution, typically leading to a bachelor's degree.