The Amortization Expense May Be Used for ________ but for ________,The

question 23

Multiple Choice

The amortization expense may be used for ________ but for ________,the Canada Revenue Agency (CRA) requires companies to use Capital Cost Allowance (CCA) .

• A) asset valuation; financial reporting purposes
• B) tax purposes; financial reporting purposes
• C) financial reporting purposes; tax purposes
• D) the income statement; the balance sheet

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, showing revenues, expenses, and profits or losses.

Prepaid Expense

Prepaid Expense represents payments made for expenses which benefits have not yet been received, recognized as assets until they are incurred.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, giving a snapshot of its financial position.

Wages Expense

The total cost incurred by a company for paying its employees' salaries within a specific period.