The definition of gross income in the tax law is: All items specifically listed as income in the tax law All cash payments received for goods provided and services performed All income from whatever source derived All income from whatever source derived unless the income is earned illegally

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Answer 1

Textbook Question

Chapter 2, Problem 1MCQ

The definition of gross income in the tax law is:

All items specifically listed as income in the tax law
All cash payments received for goods provided and services performed
All income from whatever source derived
All income from whatever source derived unless the income is earned illegally

Expert Solution & Answer

To determine

Concept Introduction:

As per the provisions of income tax, income is categorized into two types; gross income and taxable income. Gross income is the total income of a person before allowing deductions from the income. Taxable income is income after allowing the deduction from the gross income. Tax is calculated on taxable income.

To choose: The correct definition of gross income.

Answer to Problem 1MCQ

The correct option is a.

Explanation of Solution

Explanation for correct answer:

Gross income includes all the items specified as income under the income tax law. Hence the correct option is a.

Explanation for incorrect answers:

b.

All cash payments received for goods provided and services performed are considered as revenue as per the income tax law. The income is calculated after subtracting expenses from the revenue. Hence this option is not correct.

c.

An item comes under the provisions of the income tax if it is specifically mentioned in the income tax law. So, gross income does not include income from any random source. Hence this option is not correct.

d.

Income tax is applied to legal as well as an illegal source of income. Hence this option is not correct.

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Students have asked these similar questions

Howard James started a business in 2011 in Jamaica and has been operating in the wholesale/retail industries, where he buys and sells household items to the local market. In 2012, he expanded his business operations and opened two other businesses in Trinidad and Tobago and Antigua and Barbuda, respectively. The annual sales of the respective businesses in 2015 are: Jamaica: J$3,000.00 Trinidad and Tobago: TT$251,000.00 Antigua and Barbuda: $299.00 Mr. James failed to register his business for VAT/GCT as specified by the respective Sales Tax Acts and Regulations. He stated that there is no need for his businesses to be registered because their sales are under the VAT thresholds and thus not required to be registered. a) You are to advise Mr. James if his decision not to register his businesses is justifiable. b) Search the respective VAT Acts for the 3 countries and advise Mr. James of the benefits of being a registered taxpayer; also the penalties for not registering for VAT/GCT.

Get correct answer general accounting question

PLEASE HELP FILL THESE CELLS. NOTICE I HAVE PROVIDE THE OPTIONS ON THE DROP DOWN

Answer 2

Textbook Question

Chapter 2, Problem 1MCQ

The definition of gross income in the tax law is:

All items specifically listed as income in the tax law
All cash payments received for goods provided and services performed
All income from whatever source derived
All income from whatever source derived unless the income is earned illegally

Expert Solution & Answer

To determine

Concept Introduction:

As per the provisions of income tax, income is categorized into two types; gross income and taxable income. Gross income is the total income of a person before allowing deductions from the income. Taxable income is income after allowing the deduction from the gross income. Tax is calculated on taxable income.

To choose: The correct definition of gross income.

Answer to Problem 1MCQ

The correct option is a.

Explanation of Solution

Explanation for correct answer:

Gross income includes all the items specified as income under the income tax law. Hence the correct option is a.

Explanation for incorrect answers:

b.

All cash payments received for goods provided and services performed are considered as revenue as per the income tax law. The income is calculated after subtracting expenses from the revenue. Hence this option is not correct.

c.

An item comes under the provisions of the income tax if it is specifically mentioned in the income tax law. So, gross income does not include income from any random source. Hence this option is not correct.

d.

Income tax is applied to legal as well as an illegal source of income. Hence this option is not correct.

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Answer 3

Textbook Question

Chapter 2, Problem 1MCQ

The definition of gross income in the tax law is:

All items specifically listed as income in the tax law
All cash payments received for goods provided and services performed
All income from whatever source derived
All income from whatever source derived unless the income is earned illegally

Expert Solution & Answer

To determine

Concept Introduction:

As per the provisions of income tax, income is categorized into two types; gross income and taxable income. Gross income is the total income of a person before allowing deductions from the income. Taxable income is income after allowing the deduction from the gross income. Tax is calculated on taxable income.

To choose: The correct definition of gross income.

Answer to Problem 1MCQ

The correct option is a.

Explanation of Solution

Explanation for correct answer:

Gross income includes all the items specified as income under the income tax law. Hence the correct option is a.

Explanation for incorrect answers:

b.

All cash payments received for goods provided and services performed are considered as revenue as per the income tax law. The income is calculated after subtracting expenses from the revenue. Hence this option is not correct.

c.

An item comes under the provisions of the income tax if it is specifically mentioned in the income tax law. So, gross income does not include income from any random source. Hence this option is not correct.

d.

Income tax is applied to legal as well as an illegal source of income. Hence this option is not correct.

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Answer 4

Textbook Question

Chapter 2, Problem 1MCQ

The definition of gross income in the tax law is:

All items specifically listed as income in the tax law
All cash payments received for goods provided and services performed
All income from whatever source derived
All income from whatever source derived unless the income is earned illegally

Expert Solution & Answer

To determine

Concept Introduction:

As per the provisions of income tax, income is categorized into two types; gross income and taxable income. Gross income is the total income of a person before allowing deductions from the income. Taxable income is income after allowing the deduction from the gross income. Tax is calculated on taxable income.

To choose: The correct definition of gross income.

Answer to Problem 1MCQ

The correct option is a.

Explanation of Solution

Explanation for correct answer:

Gross income includes all the items specified as income under the income tax law. Hence the correct option is a.

Explanation for incorrect answers:

b.

All cash payments received for goods provided and services performed are considered as revenue as per the income tax law. The income is calculated after subtracting expenses from the revenue. Hence this option is not correct.

c.

An item comes under the provisions of the income tax if it is specifically mentioned in the income tax law. So, gross income does not include income from any random source. Hence this option is not correct.

d.

Income tax is applied to legal as well as an illegal source of income. Hence this option is not correct.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Concept Introduction:

As per the provisions of income tax, income is categorized into two types; gross income and taxable income. Gross income is the total income of a person before allowing deductions from the income. Taxable income is income after allowing the deduction from the gross income. Tax is calculated on taxable income.

To choose: The correct definition of gross income.

Answer to Problem 1MCQ

The correct option is a.

Explanation of Solution

Explanation for correct answer:

Gross income includes all the items specified as income under the income tax law. Hence the correct option is a.

Explanation for incorrect answers:

b.

All cash payments received for goods provided and services performed are considered as revenue as per the income tax law. The income is calculated after subtracting expenses from the revenue. Hence this option is not correct.

c.

An item comes under the provisions of the income tax if it is specifically mentioned in the income tax law. So, gross income does not include income from any random source. Hence this option is not correct.

d.

Income tax is applied to legal as well as an illegal source of income. Hence this option is not correct.

Answer 8

Expert Solution & Answer

To determine

Concept Introduction:

As per the provisions of income tax, income is categorized into two types; gross income and taxable income. Gross income is the total income of a person before allowing deductions from the income. Taxable income is income after allowing the deduction from the gross income. Tax is calculated on taxable income.

To choose: The correct definition of gross income.

Answer to Problem 1MCQ

The correct option is a.

Explanation of Solution

Explanation for correct answer:

Gross income includes all the items specified as income under the income tax law. Hence the correct option is a.

Explanation for incorrect answers:

b.

All cash payments received for goods provided and services performed are considered as revenue as per the income tax law. The income is calculated after subtracting expenses from the revenue. Hence this option is not correct.

c.

An item comes under the provisions of the income tax if it is specifically mentioned in the income tax law. So, gross income does not include income from any random source. Hence this option is not correct.

d.

Income tax is applied to legal as well as an illegal source of income. Hence this option is not correct.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Concept Introduction:

As per the provisions of income tax, income is categorized into two types; gross income and taxable income. Gross income is the total income of a person before allowing deductions from the income. Taxable income is income after allowing the deduction from the gross income. Tax is calculated on taxable income.

To choose: The correct definition of gross income.

Answer 12

Answer to Problem 1MCQ

The correct option is a.

Answer 13

Explanation of Solution

Explanation for correct answer:

Gross income includes all the items specified as income under the income tax law. Hence the correct option is a.

Explanation for incorrect answers:

b.

All cash payments received for goods provided and services performed are considered as revenue as per the income tax law. The income is calculated after subtracting expenses from the revenue. Hence this option is not correct.

c.

An item comes under the provisions of the income tax if it is specifically mentioned in the income tax law. So, gross income does not include income from any random source. Hence this option is not correct.

d.

Income tax is applied to legal as well as an illegal source of income. Hence this option is not correct.

Answer 14

Ch. 2 - The definition of gross income in the tax law is:...Ch. 2 - Prob. 2MCQ Ch. 2 - Prob. 3MCQ Ch. 2 - Prob. 4MCQ Ch. 2 - Prob. 5MCQ Ch. 2 - Which of the following items would be included in...Ch. 2 - Malin is a married taxpayer and has three...Ch. 2 - George works at the Springfield Nuclear Plant as a...Ch. 2 - Prob. 9MCQ Ch. 2 - Which of the following will result in the...

The definition of gross income in the tax law is: All items specifically listed as income in the tax law All cash payments received for goods provided and services performed All income from whatever source derived All income from whatever source derived unless the income is earned illegally

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