An Ordinary Expense I.is an Expense Commonly Incurred in an Income-Producing Activity

question 74

Multiple Choice

An ordinary expense
I.is an expense commonly incurred in an income-producing activity.
II.is an expenditure that provides future benefits to an income-producing activity.
​

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

---

Definitions:

Ketones

Organic compounds characterized by the presence of a carbonyl group (C=O) bonded to two other carbon atoms, important in many biochemical processes and industrial applications.

Ethers

A group of organic substances identified by the presence of an oxygen atom linked to two alkyl or aryl groups.

Ester Functional Group

A chemical functional group derived from an acid where at least one –OH (hydroxyl) group is replaced by an –O– (oxy) group.

Ketone Group

A functional group in organic chemistry characterized by a carbon atom double-bonded to an oxygen atom, with two other carbon atoms attached.