The phrase "ordinary and necessary" means that an expense must be appropriate and helpful for generating a profit.

Name: The phrase "ordinary and necessary" means that an expense must be appropriate and helpful for generating a profit.
Brand: Quizplus
Rating: 4.7 (60 reviews)

Question

Quizplus · Accepted Answer

The phrase "ordinary and necessary" is used to describe expenses that are both common and helpful for businesses to generate a profit. Therefore, an expense must be appropriate and helpful for generating a profit to be considered "ordinary and necessary."

The Phrase "Ordinary and Necessary" Means That an Expense Must