The Most That a Proprietor Can Lose,as a Result of Business

question 99

True/False

The most that a proprietor can lose,as a result of business debts or lawsuits,is limited to the amount he/she has invested in the proprietorship itself.

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Definitions:

Net Income

The company's earnings post all deductions, including expenses and taxes, from its overall revenues.

Deferred Tax Liability

This is a tax obligation that a company owes but can pay at a future date due to timing differences between its financial accounting and tax filing.

Deferred Tax Asset

An accounting asset representing the amount of taxes payable in future periods due to deductible temporary differences and carryforwards.

Capital Cost Allowance

A tax deduction in some tax systems for businesses, representing depreciation on capital assets.