When Using the Automatic Mileage Method, Which, If Any, of the Following

question 119

Multiple Choice

When using the automatic mileage method, which, if any, of the following expenses also can be claimed?

• A)Engine tune-up.
• B)Parking.
• C)Interest on automobile loan.
• D)MACRS depreciation.
• E)None of the above.

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Definitions:

Net Method

The Net Method is an accounting procedure that records the purchase of goods or services after deducting any discounts for early payment.

Internal Control

The process implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Purchase Discounts

A reduction in the price of goods bought, usually for early payment or in bulk quantity.

Net Method

An accounting technique that reports invoice amounts and accounts payable after deducting any available discounts for early payment.