In Ratio Analysis, the Ratios Are Never Expressed as a

question 14

Multiple Choice

In ratio analysis, the ratios are never expressed as a

• A) rate.
• B) logarithm.
• C) percentage.
• D) simple proportion.

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Definitions:

CCA Class

A categorization in Canadian tax law that determines the depreciation rate for tax purposes on capital assets.

Depreciation Tax Shield

A reduction in taxable income for a business, resulting from the depreciation expense claimed on tangible assets.

Tax Rate

The percentage of income or value that is collected by the government as tax.

MACRS Depreciation

A method of depreciation in the U.S. that allows for a faster write-off of assets under the tax code.