Which of the Following Is Not a Test to Deduct

question 80

Multiple Choice

Which of the following is not a test to deduct business expenses:

• A)The expense must be ordinary and necessary
• B)The expense must have a legitimate business purpose
• C)The expense must be reasonable
• D)The expense must be lavish and extravagant

---

Definitions:

Tax

Mandatory financial charges imposed by a government on individuals, corporations, and transactions to fund public services and government operations.

Per-unit Burden

It refers to the cost that each unit of a product or service incurs, often considered in analyses of taxes or production costs.

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.