The Ordinary and Necessary Expenses for Operating an Illegal Gambling

question 5

True/False

The ordinary and necessary expenses for operating an illegal gambling operation (excluding such items as fines, bribes, and other illegal payments) are deductible.

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Definitions:

Transactions

The events or interactions between businesses or individuals that have economic substance and can be measured in terms of money.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal, used to ensure the accounting entries are in balance.

T-Accounts

A visual representation used in accounting to show the debits and credits in separate columns for each account in the general ledger.

Dividends

Distributions from a corporation to its shareholders, representing a share of the company's earnings.