Question 7

7.Which of the following is not an income for income tax purposes?

• d. None of the above
• a. Collection of loans receivables
• b. Condonation of debt for services rendered
• c. Excess of selling price over the cost of an asset sold

Question 8

8.Which of the following is not a characteristics of income?

• a. Increase in taxpayers wealth
• b. Realization or receipt of gain
• d. Return of taxpayers wealth
• c. Earnings constructively received

Question 9

9.Which is not a valid definition of income?

• d. Income means cash or its equivalent unless otherwise specified
• a. Income is the return from capital invested
• c. Income means all wealth which flows into the taxpayer other than a mere return of capital
• b. Income is a fund at one distinct point of time

Question 10

10.The share in the profits of a partner in a general professional partnership is regarded as received by him and thus taxable although not yet distributed. The principle is known as

• b. Advance reporting of income
• a. Actual receipt of income
• d. Constructive receipt of income
• c. Accrual method of accounting