All of the Following Are a Required Test for the Deduction

question 131

Multiple Choice

All of the following are a required test for the deduction of a business expense except?

• A)GAAP approved.
• B)Ordinary.
• C)Necessary.
• D)Business purpose.
• E)Reasonable in amount.

---

Definitions:

Fixed Price Contract

A type of contract where the payment amount does not depend on resources used or time expended, providing certainty about the total project cost.

Price Adjustment

The process of altering the price of goods or services in response to market conditions, contract terms, or cost changes.

Short Projects

Projects characterized by their limited duration and scope, typically requiring swift execution and delivery within a constrained timeline.

Scope Of Work

A detailed document that outlines the objectives, deliverables, and specific tasks required to complete a project.