Match Each Statement with the Correct Term Below

question 18

Multiple Choice

Match each statement with the correct term below.
-Capital expenditure

• A)Automobile used 75% for business.
• B)Investment interest expense on loan to acquire municipal bonds.
• C)Cost of investigating a new trade or business that the taxpayer enters.
• D)Can be separated into two classifications.
• E)Expenses related to royalty income
• F)Expenditure to influence legislation.
• G)Cost of a new roof for office building.
• H)Relates to an income producing activity mainly carried on for recreation or personal enjoyment.
• I)Deductibility depends on income and amount of personal and rental use.
• J)Deductibility depends on whether the area is used exclusively for trade or business activities.

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Definitions:

Direct Exporting

Selling products directly to consumers or retailers in another country, without the use of an intermediary.

Overseas Marketing

The practice of promoting and selling products or services in foreign countries beyond the company's home market.

Revenue Tariff

A duty imposed on imported goods primarily to generate income for the government rather than to restrict imports or protect domestic industries.

Venetian Glass

A type of glass made in Venice, Italy, renowned for its craftsmanship, color, and intricate designs.