Some Items Are Typically Not Allowable Tax Deductions but Are

question 80

Multiple Choice

Some items are typically not allowable tax deductions but are recognised as an expense for accounting purposes.Which of the following items are of that type?

• A) research and development costs
• B) warranty costs
• C) sick leave payments
• D) goodwill amortisation

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Definitions:

Dividends Accounts

Dividends Accounts represent the financial accounts used by a company to record the dividends paid out to shareholders, reflecting the distribution of earnings.

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which must be settled over time through the transfer of money, goods, or services.

Debit

A bookkeeping entry that triggers an increment in assets or a decrement in liabilities on a corporation's financial statement.

Accounts Receivable

Funds that are due to a company from its customers for goods or services delivered on credit.