Which of the Following Items Typically Found on the Selling

question 87

Multiple Choice

Which of the following items typically found on the selling and administrative expense budget will also impact the cash budget?

• A) Depreciation expense
• B) Administrative salaries
• C) Advertising expense
• D) Both administrative salaries and advertising expense are correct.

---

Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset, which evenly spreads the depreciable amount over the expected useful life of the asset.

After-Tax Salvage Value

The net value of a disposed asset after accounting for taxes on its sale.

Tax Rate

The fraction of earnings taxed from a person or a company.

CCA Class

Refers to categories in the Capital Cost Allowance system where assets are grouped according to their nature and function for tax depreciation purposes in Canada.