Which of the Following Is an Example of an Ultimate

question 110

Multiple Choice

Which of the following is an example of an ultimate consumer?

• A) a newspaper reporter who books a plane ticket to Washington, D.C., to cover the presidential inauguration
• B) a schoolteacher who bought a ticket to the Summer Olympics opening ceremonies
• C) an office receptionist who renews subscriptions for the magazines that are found in the office waiting room
• D) a retailer who buys banners for an upcoming store sale
• E) a landscaping firm employee who buys a new wheelbarrow to haul mulch

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Definitions:

Capital Cost Allowance (CCA)

A taxable expense in Canadian tax law that represents a yearly deduction for the depreciation of property used in a business or profession.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be converted to cash in the near-term.

Initial Cost

The initial expenditure involved in acquiring an asset or starting a project, before any operational or maintenance costs.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency of the business.