Which of the Following Statements About the Canada Health Transfer

question 11

Multiple Choice

Which of the following statements about the Canada Health Transfer (CHT) and the Canada Social Transfer (CST) is correct?

• A) The CHT and CST are both components of equalization payments from the federal to provincial governments.
• B) The federal government makes the CHT and CST annually to the provinces, who in turn make transfers to individuals according to need.
• C) The CHT and CST are demogrants that are transferred annually from the federal government to individuals residing in regions of Canada that lack adequate access to health and education programs.
• D) The federal government makes the CHT and CST annually to the provinces for spending on health and social programs, but the provinces are free to spend the funds as they wish.
• E) The federal government makes the CHT and the CST annually to the provinces, who are legally bound to spend on the funds for their intended purposes.

Comprehend the importance of sharing financial information within an organization.

Understand the impact of currency valuation changes on international business operations.

Acknowledge the significance of accounting information to both internal and external stakeholders.

Recognize the structure and significance of key financial statements and accounting principles.

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Definitions:

Credit Balance

A balance in a financial account that indicates the amount of money owed to a creditor or the account holder; it is the opposite of a debit balance.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances from temporary accounts to permanent accounts, preparing the books for the next period.

Temporary Accounts

Revenue, expense, and drawing accounts that are closed to the owner’s capital account at the end of the accounting period.

Post-Closing Trial Balance

A listing of all accounts and their balances after the closing entries are made, ensuring debits equal credits.