If the Subject of the Contract Includes Issues That May

question 38

Multiple Choice

If the subject of the contract includes issues that may be controversial,it is best to:

• A) keep lawyers out of the negotiation, so relationships are not strained.
• B) deal with them up front before the relationship is strained.
• C) deal with them one at a time, as the problems arise.
• D) state your position up front and stand firm when the other party objects.

Evaluate the tax implications of travel expenses related to business activities.

Understand the treatment of business losses, including deductions related to bad debts and casualty losses.

Identify and calculate the maximum deduction limits under Section 179 and bonus depreciation.

Understand the principles of depreciation, including conventions and methods applicable to different types of assets.

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Definitions:

Ending Inventory

The aggregate value of goods up for sale at the termination of an accounting interval.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

Inventory Cost Flow Assumption

A method used in accounting to determine the cost of goods sold and ending inventory value, examples include FIFO, LIFO, and average cost methods.