For Retirees,the Most Important Difference Between CPP and OAS Is

question 41

Multiple Choice

For retirees,the most important difference between CPP and OAS is that

• A)Only OAS can be taken early at a reduced amount.
• B)Only OAS is based on income earned each year relative to the YMPE.
• C)Only CPP can be taken early at a reduced amount.
• D)Only CPP can be deferred to receive an increased monthly amount.

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Definitions:

Indirect Method

A way to report cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Accrual Earnings

Earnings that are recognized when revenues are earned and expenses are incurred, not necessarily when cash is received or paid.

Reconciliation

The process of ensuring that two sets of records (usually the balances of two accounts) are in agreement.

Direct Method

The Direct Method in accounting is a way to present the cash flow statement, showing actual cash receipts and payments, directly reporting major classes of gross cash receipts and payments.