An ordinary expense
I.is normal, common, and accepted under the circumstances of the business community.
II.is an expense commonly incurred in an income-producing activity.

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

Question

An ordinary expense
I.is normal, common, and accepted under the circumstances of the business community.
II.is an expense commonly incurred in an income-producing 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

An ordinary expense is both normal, common, and accepted under the circumstances of the business community, as well as commonly incurred in an income-producing activity. Therefore, both statements I and II are correct.

An Ordinary Expense I.is Normal, Common, and Accepted Under the Circumstances of the Circumstances