Match the Proper Deduction Method with the Correct Expenditures

question 3

Multiple Choice

Match the proper deduction method with the correct expenditures.
-Covenant not to compete for 4 years

• A)Capitalized and amortized over a number of accounting periods
• B)Expensed in the period incurred
• C)Not deductible
• D)Can be capitalized and amortized or deductible depending on the amount of the expenditure

---

Definitions:

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle.