The Following Formula Is Used to Calculate the Anticipated Result

question 12

Multiple Choice

The following formula is used to calculate the anticipated result:

• A) = anticipated fixed costs - anticipated variable costs
• B) = anticipated pay-ins - anticipated pay-outs
• C) = anticipated income - anticipated expenses
• D) = anticipated income - anticipated costs

---

Definitions:

Informational Returns

Tax documents used to report certain types of transactions to the IRS, including income, interest, dividends, but not directly tax-deductible amounts.

Straight-Line Method

A method of calculating depreciation for accounting purposes, allocating a uniform expense amount to each year of an asset's useful life.

Depreciated

A decrease in the value of an asset over time, often due to wear and tear or obsolescence, which can be used for tax deductions.

Primarily Personal Property

Items or assets that are mainly used for personal, non-business purposes, which may include vehicles, furniture, and electronics.