Which of the Following Statements Is True

question 61

Multiple Choice

Which of the following statements is true?

• A) The accounting book value for all assets in a class equals the UCC for that class.
• B) The CCA claimed does not affect cash outflows.
• C) The total CCA available over the life of the asset depends on the method of depreciation used.
• D) Since CCA does not involve a cash expenditure, it can be ignored in capital-budgeting decisions.
• E) The depreciation method used does not affect cash inflows from operations.

---

Definitions:

Altering

The process of making changes or modifications, often referred to in the context of adjusting or tailoring clothes, but can also apply broadly to adjustments in plans or designs.

Building

The act or process of constructing structures such as houses, offices, and factories.

Service Businesses

Service businesses are companies that primarily earn revenue through providing intangible products and services rather than selling physical goods. Examples include consulting firms, restaurants, and cleaning services.

Plumbers

Tradespeople specializing in installing, maintaining, and repairing systems used for water, sewage, and drainage in plumbing systems.