Which of the Following Is a True Statement

question 46

Multiple Choice

Which of the following is a true statement?

• A)Meals, lodging, and incidental expenditures are deductible if the taxpayer is away from home overnight while traveling.
• B)Meals are deductible for an employee who is forced to work during the lunch hour.
• C)When a taxpayer travels solely for business purposes, only half of the costs of travel are deductible.
• D)If travel has both business and personal aspects, the cost of transportation is always deductible but the deductibility of lodging depends upon whether business is conducted that day.
• E)None of the choices are true because business travel is not deductible.

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Definitions:

Unearned Revenue

Unearned revenue refers to money received by a company for goods or services yet to be delivered or performed, hence recognized as a liability until the service is completed.

Financial Statements

Reports that summarize the financial activities and condition of a business or individual.

Liability

A financial obligation or amount owed by a company to creditors, employees, tax authorities, or other entities.

Unearned Fees

Income received by a business for services yet to be performed or delivered, recorded as a liability on the balance sheet until the services are completed.