💰 CPA Exam Prep

The constructive receipt doctrine states that:

A Income is taxed when earned
B Income is taxable when it is made available without restriction, even if not actually received
C Income is only taxed on receipt
D Income is never taxable

✓ Correct Answer: Option B

Constructive receipt: if income is available and unrestricted, its taxable even if not physically collected (e.g., uncashed check).

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