Match Each Statement with the Correct Term Below

question 83

Multiple Choice

Match each statement with the correct term below.
-Production-of-income expense

• A)Automobile used 75% for business.
• B)Investment interest expense on loan to acquire municipal bonds.
• C)Cost of investigating a new trade or business that the taxpayer enters.
• D)Can be separated into two classifications.
• E)Expenses related to royalty income
• F)Expenditure to influence legislation.
• G)Cost of a new roof for office building.
• H)Relates to an income producing activity mainly carried on for recreation or personal enjoyment.
• I)Deductibility depends on income and amount of personal and rental use.
• J)Deductibility depends on whether the area is used exclusively for trade or business activities.

---

Definitions:

Cost Reconciliation Report

A financial statement that reconciles the total costs incurred with the costs accounted for, to ensure accuracy in financial reporting.

Weighted-Average Method

A cost accounting method that calculates the cost per equivalent unit of goods during a period by taking into account both the cost and quantity of the units produced.

Canned Vegetable Soup

This refers to a preserved, ready-to-eat soup product that contains various vegetables.

Weighted-Average Method

A method for valuing inventory that calculates the cost of inventory based on the average cost of all comparable items available throughout the period, adjusted by their weighted importance.