Which of the Following Is an Allowable Deduction

question 2

Multiple Choice

Which of the following is an allowable deduction?

• A)Alimony payments
• B)Childcare expenses
• C)Registered pension plan (RPP)contributions
• D)All of these answers are correct.

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Definitions:

Closing Entries

Adjustments made at the end of an accounting period to transfer balances from temporary to permanent accounts to prepare the books for the next period.

Revenues

Income generated from normal business operations, often from the sale of goods and services to customers.

Expenses

Costs incurred by a business or individual in the process of earning revenue, ranging from utilities to salaries.

Drawing Account

An account used to record withdrawals made by an owner from the business for personal use.