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

---

Definitions:

Bank Reconciliation

The process of reconciling the checkbook balance with the bank balance given on the bank statement.

Phishing

Fake e-mails that attempt to obtain information about online banking customers.

Drawee

The party in a draft or bill of exchange who is directed to pay, typically a bank.

Internal Control

Procedures and policies implemented by a company to safeguard its assets, ensure financial accuracy, and promote operational efficiency.