Accounting 101

 Question 1

7 out of 7 points

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| Barry is a self-employed attorney who travels to New York on a business trip during 2013. Barry's expenses were as follows: Airfare | $560 |

Taxis | $  40 |

Meals | $100 |

Lodging | $350 |

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How much may Barry deduct as travel expenses for the trip? | | | |

| Correct Answer: | $1,000 |

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 Question 2

7 out of 7 points

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| Maria runs a small business out of her home.  She has expenses of $2,000 per year and uses the cash basis method of accounting. Her only employee is her cousin who works for her part-time.  What form should she use to report her business income? | | | |

| Correct Answer: | Schedule C |

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 Question 3

0 out of 7 points

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| During the 2013 holiday season, Bob, a barber, gave business gifts to 34 customers. The values of the gifts, which were not of a promotional nature, were as follows:

8 at $10 each

8 at $25 each

8 at $50 each

10 at $100 each

For 2013, what is the amount of Bob's business gift deduction? | | | |

| Correct Answer: | $730 |

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 Question 4

7 out of 7 points

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| Linda is self-employed and spends $600 for business meals and $400 for business entertainment in 2013. What is Linda allowed to deduct in 2013 for these expenses? | | | |

| Correct Answer: | $500 |

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 Question 5

7 out of 7 points

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| Carlos drives to Oregon to consult with a client.  He works for 1 day and spends 3 days enjoying Oregon since the consultation was right before a 3-day weekend. His expenses were $175 to drive to Oregon and back, $600 for lodging, $45 for food on the day that he worked, and $125 for food on the other 3 days.  How much of his travel expenses are deductible? | | | |

| Correct Answer: | $348 |

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 Question 6

7 out of 7 points

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| What income tax form does a self-employed sole proprietor usually use to report business income...