Legal Methods of Reducing Your Taxes Include All of the Following

question 84

Multiple Choice

Legal methods of reducing your taxes include all of the following except

• A) organizing your records to track appropriate expenses and contributions.
• B) preparing your return early in the year so you are not rushed.
• C) seeking the advice of an accountant.
• D) overstating cash contributions to Salvation Army Christmas kettles.

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Definitions:

Expected Value

In statistics, Expected Value refers to the sum of all possible values each multiplied by the probability of its occurrence, offering a measure of the center of distribution of a variable.

Net Profit

The total earnings minus the costs and expenses of a business or investment, indicating the actual profit made.

Investment

The process of distributing funds or resources with the aim of earning income or profit.

Portfolio

A collection of investments held by an individual or institution, including stocks, bonds, real estate, and more, often diversified to reduce risk.