A business expense includes
I.an expenditure that satisfies the dominant profit-motive requirement.
II.an expenditure that is incurred in a trade or business activity.

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

Question

A business expense includes
I.an expenditure that satisfies the dominant profit-motive requirement.
II.an expenditure that is incurred in a trade or business activity.
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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. A business expense is an expenditure that is associated with carrying on a trade or business activity and satisfies the dominant profit-motive requirement. This means that the expense must be primarily related to producing income or profit for the business.

A Business Expense Includes