The Two Primary Classes of Transactions in the Sales and Collection

question 55

Multiple Choice

The two primary classes of transactions in the sales and collection cycle are

• A) sales and sales discounts.
• B) sales and cash receipts.
• C) sales and sales returns.
• D) sales and accounts receivable.

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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.