The correct answer is D. Duties and taxes.
Taxes are a type of government levy that is imposed on individuals or businesses. They are used to fund government operations and services. Taxes can be classified into two main categories: direct taxes and indirect taxes. Direct taxes are taxes that are levied directly on the person or entity that is responsible for paying them. Indirect taxes are taxes that are levied on goods and services, and are ultimately paid by the consumer.
Taxes paid are considered to be a direct expense. This is because they are directly related to the operation of the business. Taxes are an unavoidable cost of doing business, and they must be paid in order to operate legally.
The other options are incorrect because they do not accurately reflect the nature of taxes. Capital is money or other assets that are used to start or expand a business. Loans and liabilities are debts that a business owes. Direct expenses are costs that are directly related to the production of goods or services.