C Is a CPA Is

question 20

True/False

C is a C.P.A.and operates his own practice out of a seven story building that he owns.He rents out five floors and uses two for his own business.This year he had a loss of $30,000 from the rental side of his operations.His accounting practice netted a profit of $600,000.C may offset the $30,000 loss against the $600,000 profit from his business.

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Definitions:

Partnerships

A formally approved business entity where several individuals come together to share in the management and the financial gains.

Corporations

Legal entities established by shareholders who invest money or assets for a common purpose and enjoy limited liability protection.

Overhead

refers to the ongoing business expenses not directly attributed to creating a product or service, including rent, utilities, and administrative costs.

Schedule Flexibility

The ability to adjust work hours or duties to accommodate different needs or preferences, often seen as a benefit in employment.