When an Account Is Written Off Using the Direct Write-Off

question 56

Multiple Choice

When an account is written off using the direct write-off method, total assets will:

• A) remain the same
• B) increase
• C) decrease
• D) cannot be determined

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Definitions:

CCA Depreciation

Stands for Capital Cost Allowance Depreciation, which is a way to claim a tax deduction for the depreciating value of assets over time in Canada.

Market Value

The market's present selling or buying price for an asset or service.

CCA Class

Refers to the classification of tangible property under the Canadian Capital Cost Allowance for purposes of tax depreciation.

Tax Rate

The cut of income taxed from individuals and corporations.