Asked by DeNae Schoel on Jun 05, 2024
Verified
For tax purposes,income is recognized if the transaction meets three conditions: economic benefit,occurrence and completion,and not exempt from tax.
Economic Benefit
The advantage gained from salary, wages, investments, or any other source that increases an individual's wealth or resources.
Exempt
Not subject to an obligation, duty, or requirement; often used in the context of income that is not subject to taxation.
- Absorb the essence of economic benefit and its influence on the identification of revenue.
- Comprehend the standards for distinguishing between taxable and nontaxable earnings, encompassing the effects of state tax reimbursements and other particular elements.
Verified Answer
TP
Towanada PettwayJun 11, 2024
Final Answer :
True
Explanation :
These are the three conditions that must be met for income to be recognized for tax purposes.
Learning Objectives
- Absorb the essence of economic benefit and its influence on the identification of revenue.
- Comprehend the standards for distinguishing between taxable and nontaxable earnings, encompassing the effects of state tax reimbursements and other particular elements.