Which of the Following Is Not a Necessary Condition for Income

question 157

Multiple Choice

Which of the following is not a necessary condition for income to be included in gross income?

• A) income must be realized
• B) income must be paid in cash
• C) income cannot be excluded by law
• D) income must be made available to a taxpayer on the cash basis
• E) All of the above

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Definitions:

Job Costing Approach

A system used to assign manufacturing costs to an individual product or batches of products, commonly used in industries where products are distinct like construction or custom manufacturing.

Selling Price Per Unit

The amount charged to the customer for a single unit of product or service.

Contribution Margin

A financial metric that represents the difference between a company's sales revenue and variable costs, used to cover fixed costs and profits.

Fixed Costs

Costs that do not fluctuate with the level of production or sales within a certain range, such as rent, salaries, and insurance premiums.