Which of the Following Would Be Classified as a General

question 331

Multiple Choice

Which of the following would be classified as a general expense on an income statement?

• A) salaries paid to salespeople
• B) dividends paid to stockholders
• C) payments made for insurance
• D) costs associated with an advertising campaign

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Definitions:

CCA Class

In Canadian taxation, a way to categorize depreciable properties for the purpose of Capital Cost Allowance calculations.

Break-Even Lease Payment

The lease payment at which the net present value of leasing costs equals the net present value of purchasing the asset.

Cost Of Debt

The effective rate that a company pays on its total debt, acting as a measure to understand the financial health and leverage of a company.

CCA Class

Refers to the Canadian tax system's categorization of depreciable property into classes, with each class having its own rate for capital cost allowance purposes.