In an Effort to Help One of Her Corporate Customers

question 1

Multiple Choice

In an effort to help one of her corporate customers avoid paying a large amount for income tax, Jenny an accountant provided an inaccurate financial statement to the company which later submitted it in support of its tax return. The fraud was discovered by Revenue Canada. Which of the following statements is correct?

• A)Jenny may be held liable for up to 50% of the amount of the fraud.
• B)Jenny may be held liable for up to 75% of the amount of the fraud
• C)Jenny may be held liable for up to 100% of the amount of the fraud
• D)Jenny may be held liable for up to 25% of the amount of the fraud
• E)Jenny may be held liable for up to 40% of the amount of the fraud

Distinguish between various depreciation methods and their impact on project valuation, including capital cost allowance (CCA).

Comprehend the significance of net working capital changes in project evaluation and its effects on cash flows.

Recognize the role of salvage value in project cash flow calculations.

Understand the concept of operating cash flow (OCF) and its calculation in project analysis.

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Definitions:

Deregulation

The reduction or elimination of government power in a particular industry, usually with the aim of creating more competition within the industry.

Monopoly

A market structure characterized by a single seller who has exclusive control over the supply and pricing of a unique product or service.

Negative Externalities

Unintended and unfavorable side effects of an economic activity that affect third parties not involved in the activity.

Majority Voting

A voting system where decisions are made based on the preference of more than half of the votes cast, commonly used in elections and organizational decision-making.