Some Items Are Treated as a Deduction for Tax Purposes

question 41

Multiple Choice

Some items are treated as a deduction for tax purposes when they are paid but are recognised as expenses when they are accrued for accounting purposes.Which of the following items are of that type?

• A) Long service leave.
• B) Goodwill amortisation.
• C) Depreciation.
• D) Entertainment.
• E) All of the given answers.

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Definitions:

Month

A unit of time, typically used in calendars, that roughly corresponds to the period required for the moon to orbit the Earth.

Fontanels

Membranous regions found in the skull of infants; permit the skull to move through the birth canal.

Newborn Baby

An infant who is within hours, days, or up to a few weeks from birth.

Bursa

A small fluid-filled sac that reduces friction between bones and tendons or muscles around a joint.