All of the Following Are a Required Test for the Deduction

question 131

Multiple Choice

All of the following are a required test for the deduction of a business expense except?

• A)GAAP approved.
• B)Ordinary.
• C)Necessary.
• D)Business purpose.
• E)Reasonable in amount.

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Definitions:

Financing Activities

Financial transactions that involve raising capital and repaying investors, such as issuing equity, securing loans, or paying dividends, which impact a company's cash flow.

Business Activities

Various processes and tasks undertaken by businesses, including operations, marketing, management, and financial transactions.

Investing

The process of distributing funds with the aim of earning a return or profit.