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:

Res Ipsa Loquitor

A legal doctrine allowing the presumption of negligence by the defendant when the accident could not have happened without negligence.

Defective Product

An item that fails to function as intended due to a flaw in design, manufacture, or marketing, presenting potential harm to users.

Vicarious Liability

A legal principle where one party is held liable for the actions or negligence of another party, often seen in employer-employee relationships.

Driving While Impaired

Operating a vehicle under the influence of alcohol, drugs, or other substances that hinder cognitive and motor skills.