Which of the Following Is Not Required for an Expenditure

question 8

Multiple Choice

Which of the following is not required for an expenditure to be deductible as a business or investment expense?

• A)recurring in nature
• B)ordinary and necessary
• C)reasonable in amount
• D)incurred by the taxpayer

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Definitions:

Financial Accounting Measures

Metrics and calculations used to record, summarize, and report the financial position and performance of a business according to accepted accounting principles.

Long-Term Operating Decisions

Strategic choices made by management concerning the long-term operations of a company, including investments in capital projects, product development, and market expansion strategies.

Activity Analysis

The study of employee effort and other business records to determine the cost of activities.

Administrative Processes

The routine activities carried out in the daily operations of an organization that support its functioning and management.