100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
Test Bank for McGraw Hill's Taxation of Individuals and Business Entities 2025 Evergreen Release By Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis$17.49
Add to cart
Test Bank for McGraw Hill's Taxation of Individuals and Business Entities 2025 Evergreen Release By Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis
44 views 2 purchases
Course
Tests Bank
Institution
Tests Bank
Test Bank for McGraw Hill's Taxation of Individuals and Business Entities 2025 Evergreen Release By Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver
Test Bank For
McGraw Hill's Taxation of Business Entities 2025 Evergreen Release By Brian
Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie
Weaver, Ronald Worsham and Edmund Outslay
Chapter 1-14
Chapter 1
Student name:
TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.
1) The Internal Revenue Code authorizes deductions for trade or business activities if the
expenditure is "ordinary and necessary."
1)
,Learning Objective : 01-01 Identify common business deductions.
3) The phrase "ordinary and necessary" has been defined to mean that an expense must be
essential and indispensable to the conduct of a business.
3)
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Topic : Business Deductions
Accessibility : Screen Reader Compatible
Type : Static
Difficulty : 2 Medium
Bloom's : Understand
Gradable : automatic
Learning Objective : 01-01 Identify common business deductions.
4) Reasonable in amount means that expenditures can be exorbitant if the activity is
motivated by profit.
4)
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Topic : Business Deductions
Accessibility : Screen Reader Compatible
Type : Static
Difficulty : 2 Medium
Bloom's : Analyze
Gradable : automatic
Learning Objective : 01-01 Identify common business deductions.
5) The test for whether an expenditure is reasonable in amount is whether the expenditure
was for an "arm's length" amount.
5)
⊚ true
⊚ false
,Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Topic : Business Deductions
Accessibility : Screen Reader Compatible
Type : Static
Difficulty : 2 Medium
Gradable : automatic
Learning Objective : 01-01 Identify common business deductions.
6) Illegal bribes and kickbacks are not deductible business expenses, but fines imposed by a
governmental unit are deductible as long as the fines are incurred in the ordinary course of
business.
6)
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Type : Static
Difficulty : 2 Medium
Bloom's : Understand
Topic : Limitations on Business Deductions
Gradable : automatic
Learning Objective : 01-02 Determine the limits on deducting business expenses.
7) Although expenses associated with illegal activities are not deductible, political
contributions can be deducted if the donation is not made to a candidate for public office.
7)
⊚ true
⊚ false
, Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : 1 Easy
Accessibility : Screen Reader Compatible
Type : Static
Topic : Limitations on Business Deductions
Gradable : automatic
Learning Objective : 01-02 Determine the limits on deducting business expenses.
8) When a taxpayer borrows money and invests the loan proceeds in municipal bonds, the
interest paid by the taxpayer on the debt will not be deductible.
8)
⊚ true
⊚ false
Question Details
AACSB : Reflective Thinking
AICPA : BB Critical Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Accessibility : Screen Reader Compatible
Type : Static
Difficulty : 2 Medium
Topic : Limitations on Business Deductions
Gradable : automatic
Learning Objective : 01-02 Determine the limits on deducting business expenses.
9) A business can deduct the cost of uniforms supplied to employees if the uniforms are not
suitable for normal wear.
9)
⊚ true
⊚ false
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller solutions. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.49. You're not tied to anything after your purchase.
