Business expenses include
I.expenditures that have a business purpose
II.expenditures that are incurred for the production of income.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Business expenses include
I.expenditures that have a business purpose
II.expenditures that are incurred for the production of income.
​
A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Both statements are correct. Business expenses are any expenditures that are necessary and ordinary for the business to operate and generate income. These expenses are tax-deductible if they meet certain criteria, including having a business purpose and being incurred for the production of income.

Business Expenses Include I.expenditures That Have a Business Purpose