Match Each Statement with the Correct Term Below

question 89

Multiple Choice

Match each statement with the correct term below.
-Ordinary Expense

• A)Specifically disallowed.
• B)Appropriate and helpful.
• C)Considered a trade or business.
• D)Not considered a trade or business.
• E)Problems with this generally arise with related parties.
• F)This is met when services or property are provided to the taxpayer.
• G)Normal, common, and accepted but not necessarily regularly recurring.
• H)This is met when the existence and the amount of a liability have been established.

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Definitions:

Specialization

The situation in which each person specializes in the task that he or she is good at performing.

Absolute Advantage

The ability of an individual or economy to produce a good or service more efficiently than competitors using the same amount of resources.

Cars

Motor vehicles with four wheels designed primarily for passenger transportation and commonly powered by internal combustion engines.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors, using fewer resources.