Match the Statements That Relate to Each Other

question 31

Short Answer

Match the statements that relate to each other. (Note: Choice L may be used more than once.)
a.Cover charge paid to entertain client at a night club.
b.Deductible even if taxpayer does not take the new job
c.Company picnic sponsored by employer
d.Use of Federal per diem allowance to substantiate meals while in travel status
e.Does not have to be job related
f.Can include cost of car insurance and automobile club dues
g.Distribution from plan is taxable
h.Distribution from plan is not taxable
i.Expatriate (U.S. person who is employed overseas) returns home to retire
j.Taxpayer moves to a new residence 55 miles closer to his present job
k.Country club membership fee
l.Correct match not provided
-Cutback adjustment applies

---

Definitions:

Decision Processes

The series of steps or stages involved in selecting among alternatives based on criteria and eventual outcomes.

Reporting Principles

The foundational guidelines that govern the preparation and presentation of financial reports, ensuring accuracy, consistency, and transparency.

Historical Cost Principle

An accounting principle that requires financial statements to be based on the original cost of an asset, rather than its current market value.

Consistency Principle

An accounting principle that requires entities to apply the same accounting methods and policies from period to period unless a change is justified and disclosed.