Which of the Following Would Not Be Considered Miscellaneous Business

question 26

Multiple Choice

Which of the following would not be considered miscellaneous business expenses?

• A) Membership fees
• B) Safe deposit box fees
• C) On-the-job uniforms/tools
• D) Tax preparation fees/financial planning fees
• E) All are considered miscellaneous business expenses

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Definitions:

Purchases

The acquisition of goods or services by a company in exchange for money.

Perpetual Inventory System

An inventory system in which a detailed inventory record is maintained, recording each purchase and sale during the accounting period.

Periodic Inventory System

A periodic inventory system is an accounting method where inventory levels and cost of goods sold are determined at specific periods, such as monthly or annually, through a physical count.

Cost of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of goods sold by a company, including material and labor costs.