Which of the Following Statements Regarding the Relationship Between Amortization

question 34

Multiple Choice

Which of the following statements regarding the relationship between amortization and income taxes is true?

• A)All capital assets have the same amortization rate.
• B)The same amortization method must be used for income tax purposes and for the books.
• C)Canada Revenue Agency specifies the maximum amortization rate (CCA rate)a taxpayer may use.
• D)Most companies use straight-line amortization for income tax purposes.

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Definitions:

Make-to-order

A manufacturing process in which products are created after a confirmed order is received, allowing for customization.

Primary Activities

Core functions or processes of a business that directly add value to a product or service, including production, marketing, sales, and service.

Production and Distribution

The processes involved in creating products or services and making them available to consumers, encompassing manufacturing, logistics, and sales channels.

RFID (Radio-Frequency Identification)

A technology that uses radio waves to identify and track objects, animals, or people automatically.