Chapter 9: Business Income, Deductions, and Accounting Methods

Descrição

This is my mind map for BUS 419 Chapter 9.
Lucille Lamberson
Mapa Mental por Lucille Lamberson, atualizado more than 1 year ago
Lucille Lamberson
Criado por Lucille Lamberson mais de 1 ano atrás
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Resumo de Recurso

Chapter 9: Business Income, Deductions, and Accounting Methods
  1. Ordinary expense
    1. Expense that is normal or appropriate for the business under the circumstances
    2. Necessary expense
      1. Expense that is helpful or conducive to the business activity but the expenditure doesn't need to be essential or indispensable
      2. Permissible accounting method
        1. Accounting method allowed under the tax law
          1. Permissible accounting methods are adopted the first time a taxpayer uses the method on a tax return.
        2. Impermissible accounting method
          1. An accounting method prohibited by tax laws
          2. To claim a tax deduction for an accrued expense, the expense must meet two tests: an all-events test and an economic performance test

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