Which of the Following Is a True Statement

question 44

Multiple Choice

Which of the following is a true statement?

• A) Meals are never deductible as a business expense.
• B) An employer can only deduct half of any meals provided to employees.
• C) The cost of business meals must be reasonable.
• D)A taxpayer can only deduct a meal for a client if business is discussed during the meal.
• E)None of these

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Definitions:

FIFO

An inventory valuation method that assumes that the first items placed into inventory are the first sold.

Purchase Costs

The total expense incurred to acquire goods or services, including the product price and additional charges related to acquisition.

Obsolete Goods

Items that are no longer useful or saleable due to changes in technology, style, or customer preferences, often leading to inventory write-offs.

Original Cost

The initial cost of acquiring an asset or service, including all expenses related to the purchase.