Which of the Following Does Not Give Rise to a Business

question 11

Multiple Choice

Which of the following does not give rise to a business expense for self-employed taxpayer's uniforms or special clothing?

• A)A lawyer buys a business suit.
• B)A mascot buys his costume.
• C)A clown buys his costume.
• D)A scientist buys his hazmat suit.
• E)All of these are deductible.

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Definitions:

Periodic Inventory System

An inventory accounting system where the inventory is physically counted at specific intervals to determine the cost of goods sold and ending inventory value.

Average Cost

An inventory costing method where all costs of inventory purchased are averaged to determine the cost of goods sold and ending inventory value.

Unit Cost

The cost incurred to produce, acquire, or deliver one unit of a product or service.