Adjustments Must Be Made from Accrual-Based Accounting Records to Be

question 27

Multiple Choice

Adjustments must be made from accrual-based accounting records to be consistent with the Canadian Income Tax Act. One such adjustment is

• A) The unfunded portion of pension expenses must be estimated to be tax-deductible
• B) Cash payouts in support of warranties must be estimated to be tax deductible
• C) Dividends received from Canadian corporations must be added into taxable income
• D) Amortization expense that is declared must conform to CCA rate maximums
• E) Income earned is declared according to the calendar year, not incorporate fiscal year

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