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:

Grasping

The action of taking hold of something firmly with the hands or utilizing tools to obtain or gather something.

Cutting

The act of making an incision or dividing materials into parts using a sharp tool.

Dilating/probing

The act of expanding or opening wider a body part, often combined with an examination to explore or investigate.

Jewelry

Decorative items worn for personal adornment, such as rings, earrings, bracelets, and necklaces, often made of precious metals and stones.