The Constructive Receipt Doctrine Requires That Income Must Be Recognized

question 85

True/False

The constructive receipt doctrine requires that income must be recognized when it is made available to the cash basis taxpayer, although it has not been actually received. The constructive receipt doctrine does not apply to accrual basis taxpayers.

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Definitions:

Feedback

Information provided regarding aspects of one's performance or understanding, aimed at improvement.

Selective Perception

The process by which individuals perceive what they want to in media messages while ignoring opposing viewpoints.

Filtering

The process of screening or removing certain information or stimuli, often to focus on more relevant or significant data.

Dichotic Listening

A psychological test where an individual receives different auditory stimuli in each ear simultaneously and is asked to focus on one to measure selective attention.