Which of the Following Business Expenses Is Not a Deduction

question 21

Multiple Choice

Which of the following business expenses is not a deduction for the purposes of income tax?

• A)Employees' wages
• B)Cost of trading stock
• C)Motor vehicle expenses
• D)Purchase price of business premises

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Definitions:

Enron

Enron was a U.S.-based energy company that collapsed after an accounting fraud scandal, becoming a symbol of corporate fraud and corruption.

Financial Statement

Summaries that offer a comprehensive view of a firm's financial status, featuring the balance sheet, income statement, and statement of cash flows.

Balance Sheet

An outline of a company’s financial status, detailing assets, liabilities, and the equity of its shareholders, at a precise time.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity.