Under the Existing GAAP Hierarchy for State and Local Government

question 9

Multiple Choice

Under the existing GAAP hierarchy for state and local government financial reporting,the GASB Implementation guides are:

• A) More authoritative than GASB Statements.
• B) Less authoritative than GASB Technical Bulletins.
• C) More authoritative than the AICPA state and local government audit guide.
• D) Equally authoritative to AICPA Practice Bulletins.

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Definitions:

Eligible Dividends

Eligible dividends are those paid by Canadian corporations to Canadian residents, which are eligible for an enhanced dividend tax credit.

CCA Rate

Capital Cost Allowance Rate; a percentage used to calculate the yearly depreciation of tangible property for tax purposes in Canada.

Half-Year Rule

CRA’s requirement to figure CCA on only one-half of an asset’s installed cost for its first year of use.

Depreciation Expense

The process of charging a portion of the cost of an asset to expense over its expected useful life, reflecting the asset’s consumption or wear and tear.