Which of the Following Requirements Does Not Have to Be

question 99

Multiple Choice

Which of the following requirements does not have to be met for a business or investment expense to be deductible:

• A)Be ordinary and necessary.
• B)Be reasonable in amount.
• C)Be recurring.
• D)Be the taxpayer's own expense.
• E)All of the above must be met.

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Definitions:

Reportable Segments

Parts of a business that have separate financial information available, which can be evaluated regularly by the company's chief operating decision-maker in deciding how to allocate resources and in assessing performance.

Profits

The financial gain remaining after subtracting all expenses, taxes, and costs from total revenue.

Revenues

The total amount of money received by a company for goods sold or services provided during a specific time period.

Assets Test

A means of determining eligibility for certain government assistance programs based on the value of an individual's or entity's assets.