Attendance at a Hockey Game with a Client Would Be

question 14

Multiple Choice

Attendance at a hockey game with a client would be deductible if:

• A)Some business was discussed on the phone when plans were made to meet for the game
• B)Business was discussed for about a minute while in the restroom
• C)Business was discussed at dinner before the game
• D)Business is not require to be discussed as long as this was to secure the client's goodwill

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Definitions:

Net Basis

A method of reporting gains and losses by setting off related items directly against each other, resulting in a net figure.

Financial Liabilities

Obligations owed to another entity, typically involving the future transfer of cash, goods, or services.

Amortised Cost

The amount at which financial assets or liabilities are measured in the balance sheet after the deduction of principal payments and plus or minus the cumulative amortization of any difference between the initial amount recognized and the maturity amount.

Effective Interest Rate

The true cost of borrowing that includes all fees and compounding of interest, expressed as an annual rate.