Which of the Following Statements Is Correct

question 2

Multiple Choice

Which of the following statements is correct?

• A) Capital Cost Allowance (CCA) is a cash expense that is paid by the firm.
• B) Capital Cost Allowance (CCA) is used for calculating total operating cost.
• C) Capital Cost Allowance (CCA) is used to calculate financial cost that paid for capital budget.
• D) Capital Cost Allowance (CCA) is a cash expense that should be allocated for tax purposes.