Retailers Generally Consider Sales from the Use of National Credit

question 95

Multiple Choice

Retailers generally consider sales from the use of national credit card sales as a

• A) credit sale.
• B) collection of an accounts receivable.
• C) cash sale.
• D) collection of a note receivable.

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Definitions:

Depreciation Tax Shield

A reduction in taxable income resulting from the ability to deduct depreciation expenses, thereby lowering the tax liability for a business.

CCA Deduction

Stands for Capital Cost Allowance deduction, a tax deduction in certain jurisdictions that allows businesses to deduct the depreciated value of capital assets.

Corporate Tax Rate

The tax rate imposed on the net income of a corporation by the government.

Tax Shield

The reduction in income taxes that results from taking an allowable deduction from taxable income, such as the interest on debt.