Which of the Following Business Expenses Is/are Subject to a 50

question 142

Multiple Choice

Which of the following business expenses is/are subject to a 50% deduction limit for 2013?
I.Gifts
II.Incidental expenses while traveling

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Investment Turnover

A measure of a company's efficiency in generating sales from its assets, calculated as sales divided by the average invested assets.

Operating Income

A company's profit after subtracting operating expenses, such as wages and cost of goods sold, but before deducting interest and taxes.

Divisional Operating Income

The profit earned by a specific division or segment of a company after deducting all direct and indirect expenses but before interest and taxes.

Top Management

The highest tier of executives and decision-makers in an organization, responsible for overall strategy and policies.