The economic benefit doctrine and constructive receipt doctrine help set the lines of demarcation...
Question:
The economic benefit doctrine and constructive receipt doctrine help set the lines of demarcation between what constitutes income when it must be recognized, and who must pay taxes on it.
What is the definition of these doctrines? Why are these doctrines needed? Also, discuss how the cash basis of accounting can result in manipulation of income.
The economic benefit doctrine and constructive receipt doctrine
The economic doctrine is the tax doctrine that applies to the taxpayers on the cash basis who provides services and gets compensation.
Constructive receipt doctrine is a rule that mandates the tax is paid by taxpayer on income despite the fact that the income is not received.the tax is paid by taxpayer on income.
Answer and Explanation: 1
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Economic Benefits: Definition & Concept
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Chapter 3 / Lesson 29
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Economic benefits are defined as tangible benefits that can be measured in terms of revenue generated or money saved through the implementation of policies. Explore the definition and concept of economic benefits, surplus, and how net income is useful in determining new business policies.
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