Which of the Following Best Describes a Flow (Rather Than

question 164

Multiple Choice

Which of the following best describes a flow (rather than a stock) ?

• A)you own $5,000 worth of government bonds
• B)you own a $100,000 house
• C)you own a coin collection valued at $10,000
• D)you earn $500 per week
• E)you own a $45,000 automobile

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Definitions:

CCA Class

In the context of tax regulations, CCA Class (Capital Cost Allowance Class) pertains to categories defined by tax authorities for depreciating tangible property over its useful life for tax purposes.

Net Advantage to Leasing

The benefit that arises from leasing an asset rather than purchasing it, considering factors like tax advantages and cash flow.

Tax Rate

The rate at which a person or business is taxed by the state on their earnings or gains.

CCA Rate

Capital Cost Allowance rate, which is the rate at which a business can claim depreciation on certain property types for tax purposes in Canada.