Tour Operators

question 16

Multiple Choice

Tour operators

• A) are a middle person acting as a travel counselor on behalf of airlines, cruise lines, and hotels
• B) bring together tourists and rental companies
• C) promote tours and trips that they plan and organize
• D) act in the same capacity as travel agents

Understand the criteria the CRA uses to determine the validity of a lease for tax purposes.

Recognize the maintenance responsibilities under different types of leases.

Understand the financial reporting requirements for different types of leases.

Identify the factors that make an asset a likely candidate for leasing.

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Definitions:

Independent Consideration

A separate and distinct value or benefit that is provided in return for a contractual promise or action.

Abnormal Subsurface

Relates to unexpected or unusual conditions below the ground surface, often encountered in construction or mining, that can impact the feasibility or the safety of projects.

Rock Formations

Naturally occurring arrangement of rocks in the environment, often characterized by unique shapes and compositions.

Excavation

The process of removing soil, rock, or other materials from a site to form a hole, cavity, or to uncover something buried.