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).

💡 Why is B) the correct answer?

The correct answer to the question "The constructive receipt doctrine states that:" is Option B: Income is taxable when it is made available without restriction, even if not actually received.

The other options — A) Income is taxed when earned, C) Income is only taxed on receipt, D) Income is never taxable — are incorrect for this CPA Exam Prep question. As explained above: Constructive receipt: if income is available and unrestricted, its taxable even if not physically collected (e.g., uncashed check).

📚 About This CPA Exam Prep Practice Question

This 2-level CPA Exam Prep question from the Regulation (REG) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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The constructive receipt doctrine states that:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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