Herbert Is the Sole Proprietor of a Furniture Store

question 89

True/False

Herbert is the sole proprietor of a furniture store. He can deduct real property taxes on his store building but he cannot deduct state income taxes related to his net income from the furniture store as a business deduction.

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Definitions:

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Assets

Economic resources controlled or owned by a business or individual from which future economic benefits are expected to flow.

Statement of Cash Flows

A fiscal report that demonstrates the consequences of shifts in balance sheet accounts and income on cash and cash equivalents, organizing the analysis into operations related to investing, financing, and operating activities.

Investing Transactions

Financial activities related to the purchase and sale of long-term assets or investments.