Business Income, Deductions, and Accounting Methods
Business Income, Deductions, and Accounting Methods
Upon completing this chapter, you should be able to:
LO 8-1
Describe the general requirements for deducting business
expenses and identify common business deductions.
LO 8-2
Apply the limitations on business deductions to distinguish
between deductible and nondeductible business expenses.
LO 8-3
Identify and explain special business deductions specifically
permitted under the tax laws.
LO 8-4
Explain the concept of an accounting period and describe
accounting periods available to businesses.
LO 8-5
Identify and describe accounting methods available to
businesses and apply cash and accrual methods to determine
business income and expense deductions.
