Rachel Has Significant Travel and Entertainment Expenses for Her Work,but

question 4

True/False

Rachel has significant travel and entertainment expenses for her work,but she has not kept receipts.She will be able to deduct a reasonable amount of these ordinary and necessary expenses under the Cohan rule.

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Definitions:

Contingent Liability

A potential financial obligation that may arise in the future, depending on the outcome of a specific event.

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled in the future through the transfer of assets or services.

Provisions

Liabilities of uncertain timing or amount, set aside in anticipation of future obligations or costs.

Present Obligation

A duty or responsibility that exists at the reporting date, typically requiring an outflow of resources.