Which of the Following Methods Is Required by Canada Revenue

question 47

Multiple Choice

Which of the following methods is required by Canada Revenue Agency for accounting for bad debt for tax purposes:

• A)Direct write-off method
• B)Allowance method
• C)Percentage of sales method
• D)Aging of accounts method

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Definitions:

Other Comprehensive Income

Specified items that are reported separately from net income, including foreign currency items, pension liability adjustments, and unrealized gains and losses on investments.

Financial Statements

Reports that summarize the financial performance, position, and cash flows of a business over a specific period, typically including balance sheets, income statements, and cash flow statements.

Puma Company

A global athletic and footwear brand known for its sports and lifestyle products.

Return on Total Assets

A financial ratio indicating the profitability of a company relative to its total assets, showing how efficiently assets are used to generate profit.