The Capital Cost Allowance Method (CCA) Used for Amortization for Canadian

question 48

Multiple Choice

The Capital Cost Allowance Method (CCA) used for amortization for Canadian Income Tax purposes is most similar to which of the following methods permitted for financial reporting?

• A) Straight-line
• B) Sum-of-the-years'-digits
• C) Any accelerated method
• D) Declining balance
• E) Service hours (with productive output being sufficiently similar)

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Definitions:

Safety Deposit Boxes

Secure containers usually held within a bank vault, used to store valuable possessions, documents, or data that the owner wishes to protect.

Control Activity Over Cash

Practices and procedures implemented to manage and safeguard cash transactions and prevent fraud.

Payments To Creditors

It refers to the amounts of money a company owes to its suppliers or service providers and plans to pay back.

Limited Access

Limited access refers to restrictions placed on the availability or use of resources, data, or areas, often for security, privacy, or regulatory reasons.