Under the cash equivalent doctrine, the taxpayer reports income from credit sales.

Name: Under the cash equivalent doctrine, the taxpayer reports income from credit sales.
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The cash equivalent doctrine is related to the concept that income is recognized when it is actually or constructively received in cash or cash equivalents, not when a sale is made on credit. Credit sales are recognized under the accrual method, not under the cash or cash equivalent doctrine.

Under the Cash Equivalent Doctrine, the Taxpayer Reports Income from Credit