Which of the following business expense deductions is most likely to be unreasonable in amount?
A. Cost of a meal with a former client when there is no possibility of any future benefits from a relation with that client.
B. Amounts paid to a subsidiary corporation for services where the amount is in excess of the cost of comparable services by competing corporations.
C. Compensation paid to the taxpayer's spouse in excess of salary payments to other employees.
D. All of the choices are likely to be unreasonable in amount.
E. None of the choices are likely to be unreasonable in amount.
Answer: D
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Indicate whether the statement is true or false
The use of which of the following types of measurement scales in accounting allows meaningful comparisons among similar accounting measurements for different firms?
a. Interval scale b. Ratio scale c. Nominal scale d. Ordinal scale
Which of the following is true regarding the ticketing and marking process?
A. It refers to marking off inventory that has been removed from the retailer's shelves. B. It is more efficient for a retailer to perform these activities in its storeroom. C. It is more efficient for a retailer to perform these activities at a distribution center than in its stores. D. The retailer should never consider having the vendor ship floor-ready merchandise. E. It is more efficient to perform this task when the product is in the store aisles and ready to be shelved.
A superseding cause is an intervening event that imposes liability on a defendant for injuries caused by the intervening event.
Answer the following statement true (T) or false (F)