Which of the Following Statements Regarding CCA Is True

question 70

Multiple Choice

Which of the following statements regarding CCA is true?

• A)Since CCA is a cash expense, the faster an asset is depreciated, the lower the projected NPV from investing in the asset.
• B)When corporations use CCA, the stockholder report financially looks better.
• C)CCA is a pool concept calculating values for the entire asset class, not individual assets.
• D)Using CCA declining-balance depreciation rather than straight line normally has the effect of slowing down cash flows and thus reducing a project's forecasted NPV.

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Definitions:

Principal Goes Bankrupt

When a principal goes bankrupt, it refers to a situation where the main party in a financial or business agreement is unable to repay debts and legally declares bankruptcy.

Discharge

The act of formally releasing someone from their duties, often used in the context of employment termination.

Dismissal

The act of officially removing someone from their job, often due to inadequate performance, misconduct, or redundancy.

Organizational Policies

Guidelines and rules established by an organization to govern its operations and employee behavior.