1. Allowable deductions generally refer to amounts that are subtracted directly from one's total tax liability. 2. Deductions which constitute bribe, kickback, and other similar payment made to an official or employee of the national, local or foreign government or similar entities, being against law and public policy are not deductible from gross income. A= 1st statement is true, second statement is false. B= 1st statement is false, second statement is true. C= Both statements are false. D- Both statement are true.

1. Allowable deductions generally refer to amounts that are subtracted directly from one's total tax liability. 2. Deductions which constitute bribe, kickback, and other similar payment made to an official or employee of the national, local or foreign government or similar entities, being against law and public policy are not deductible from gross income. A= 1st statement is true, second statement is false. B= 1st statement is false, second statement is true. C= Both statements are false. D- Both statement are true.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1. Allowable deductions generally refer to amounts that are subtracted directly from one's total tax liability.
2. Deductions which constitute bribe, kickback, and other similar payment made to an official or employee of the national, local or
foreign government or similar entities, being against law and public policy are not deductible from gross income.
A= 1st statement is true, second statement is false.
B= 1st statement is false, second statement is true.
C= Both statements are false.
D- Both statement are true.
O A
OD
OB
O C

1. Deductions from gross income refer to the flow of wealth to the taxpayers that are not treated as part of gross income.
2. Exclusions are the amounts, which the law allows to be deducted from gross income in order arrive at net income.
A= 1st statement is true, second statement is false.
B= 1st statement is false, second statement is true.
C= Both statements are false.
D= Both statement are true.
O C
O A
OB

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