Which of the Following Is Not a Test to Deduct

question 80

Multiple Choice

Which of the following is not a test to deduct business expenses:

• A)The expense must be ordinary and necessary
• B)The expense must have a legitimate business purpose
• C)The expense must be reasonable
• D)The expense must be lavish and extravagant

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Definitions:

Hypothesis

A proposed explanation made on the basis of limited evidence as a starting point for further investigation.

Data

Information collected for reference, analysis, or to inform decisions, often structured for easy access and study.

Customer-Satisfaction

The measure of how the goods or services supplied by a company meet or surpass customer expectation.

Experimentation

A process of trying out new ideas, processes, or products to test their efficacy, typically in a controlled setting to gather data and insights.