Clyde Operates a Sole Proprietorship Using the Cash Method

question 33

Multiple Choice

Clyde operates a sole proprietorship using the cash method. This year Clyde made the follow5i5n) g expenditures:$480 to U.S. Bank for 12 months of interest accruing on a business loan from September 1st of this year through August 31st of next year.$600 for 12 months of property insurance beginning on July 1 of this year.What is the maximum amount Clyde can deduct this year?

• A) $760.
• B) $360.
• C) $160.
• D) $480.
• E) $600.

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Definitions:

Financial Plan

A detailed strategy outlining how a business will maintain its financial health, including projections for income, expenses, and investment needs.

Macro-Environment

Refers to the broad external conditions that can impact businesses and industries, such as economic trends, social changes, technological advances, environmental factors, and political policies.

Business Plan

A formal written document that describes the nature of a business, its objectives, strategies, market, financial forecasts, and management team.

Professional-Looking Copy

Written material, such as documents, advertisements, or digital content, that is presented in a polished, formal manner conducive to professional standards.