To Be Tax Deductible by an Accrual- Basis Taxpayer, an Expense

question 2005

Multiple Choice

To be tax deductible by an accrual- basis taxpayer, an expense must be all of the following except

• A) an expense of the taxpayer.
• B) ordinary and necessary.
• C) reasonable in amount.
• D) paid in cash.

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Definitions:

CS (Conditioned Stimulus)

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.

UCS (Unconditioned Stimulus)

In classical conditioning, an unconditioned stimulus is something that naturally and automatically triggers a response without any learning needed.

Stimulus Generalization

The process by which a response is elicited by stimuli that are similar but not identical to the conditioned stimulus in a conditioning experiment.

Classical Conditioning

A method of conditioning wherein two stimuli are steadily paired; a reaction, initially caused by the second stimulus, is at last caused by the first stimulus by itself.