CPA-REGULATION practice question 12 of 15
A cash basis taxpayer should report gross income:
Full set: 69 questionsCorrect Answer:
D. For the year in which income is either actually or constructively received, whether in cash or in
property.
Explanation
Choice "d" is correct. A cash basis taxpayer should report gross income for the year in which income is either actually or constructively received, whether in cash or in property. Choice "a" is incorrect. Income also be constructively received in property - not only actually in cash. Choice "b" is incorrect. Income also be constructively received - not only actually. Choice "c" is incorrect. Income also be received in property - not only cash.
Keep practicing
Take the free CPA-REGULATION practice test
Ten exam-style questions with answers and explanations, plus the exam facts and study guides.
More questions
Other CPA-REGULATION practice questions
- Question 1Leker exchanged a van that was used exclusively for business and had an adjusted tax basi…
- Question 3Which of the following statements is the best definition of real property?
- Question 6Which of the following sales should be reported as a capital gain?
- Question 7Which one of the following will result in an accruable expense for an accrual-basis taxpa…
- Question 8Don Wolf became a general partner in Gata Associates on January 1, 1989, with a 5% intere…
- Question 9Mosh, a sole proprietor, uses the cash basis of accounting. At the beginning of the curre…