A Business Expense Includes

question 2

Multiple Choice

A business expense includes
I.an expenditure that satisfies the dominant profit-motive requirement.
II.an expenditure that is incurred in a trade or business activity.
​

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

Apply cost allocation methods in the context of educational institution administrative, maintenance, and utilities expenses.

Evaluate managerial performance using financial metrics.

Apply joint cost allocation methods to products or services.

Construct departmental income statements reflecting expansions and reallocations.

---

Definitions:

Bankruptcy and Insolvency Act

A legal statute governing bankruptcy and insolvency proceedings in a jurisdiction, aimed at providing a fair settlement for creditors and relief for financially distressed individuals or businesses.

Reorganization

The process of restructuring a company's business or financial affairs, typically during financial distress, to increase efficiency or restore solvency.

Liquidation

The process of closing a business and distributing its assets to claimants, typically occurring when a company is insolvent.

Homemade Leverage

A strategy where investors adjust the leverage or risk of their portfolio through borrowing or investing their own money, rather than relying on the company to do so.