Ms Jack Operates a Service Business as a Sole Proprietorship

question 96

True/False

Ms. Jack operates a service business as a sole proprietorship. Her taxable income for the current year will be less than $100,000. Ms. Jack is not eligible for the QBI deduction.

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Definitions:

Perpetual Inventory System

A continuous inventory system is a technique for managing stock that immediately logs the transaction of inventory sales or purchases using computerized point-of-sale systems and enterprise asset management programs.

Purchasing Merchandise Inventory

The process of acquiring goods for resale, including the selection, ordering, and receipt of merchandise.

Recording Process

The systematic method of capturing all relevant financial transactions of a business for accounting and reporting purposes.

Perpetual Inventory System

An inventory management method where records of inventory quantities are updated in real-time after every transaction.