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Questions and Answers
Which accounting principle states that revenue is recorded when it is earned regardless of whether or not payment has been received, and expenses are recorded when incurred?
Which accounting principle states that revenue is recorded when it is earned regardless of whether or not payment has been received, and expenses are recorded when incurred?
- Adjusted trial balance
- Accumulated depreciation
- Amortization
- Accrual basis of accounting (correct)
What is the term used to describe the total amount that has been written off as an expense against a particular asset over time?
What is the term used to describe the total amount that has been written off as an expense against a particular asset over time?
- Adjusted trial balance
- Capital Cost allowance
- Accumulated depreciation (correct)
- Amortization
What is the term used to describe the calculation of the decline in value of an asset from its original value to its residual or remaining value?
What is the term used to describe the calculation of the decline in value of an asset from its original value to its residual or remaining value?
- Contra asset accounts
- Adjusted trial balance
- Accumulated depreciation
- Amortization (correct)
What is the means by which Canadian businesses may claim depreciation expense for calculating taxable income under the Income Tax Act called?
What is the means by which Canadian businesses may claim depreciation expense for calculating taxable income under the Income Tax Act called?
Which principle of accounting states that revenue is recorded when it is earned regardless of whether or not payment has been received, and expenses are recorded when incurred?
Which principle of accounting states that revenue is recorded when it is earned regardless of whether or not payment has been received, and expenses are recorded when incurred?
What is the term used to describe the balance that shows the updated income statement and balance sheet entries on the worksheet?
What is the term used to describe the balance that shows the updated income statement and balance sheet entries on the worksheet?
What is the term used to describe an account linked to a long-term asset account that tracks and records the decrease in value of the asset?
What is the term used to describe an account linked to a long-term asset account that tracks and records the decrease in value of the asset?
What is the means by which Canadian businesses may claim depreciation expense for calculating taxable income under the Income Tax Act called?
What is the means by which Canadian businesses may claim depreciation expense for calculating taxable income under the Income Tax Act called?
What is the term used to describe the calculation of the decline in value of an asset from its original value to its residual or remaining value?
What is the term used to describe the calculation of the decline in value of an asset from its original value to its residual or remaining value?
Flashcards
Accrual Basis
Accrual Basis
An accounting method where revenue is recognized when earned, regardless of payment, and expenses are recorded when incurred, regardless of payment.
Accumulated Depreciation
Accumulated Depreciation
The total amount of depreciation expense that has been recorded for an asset over its useful life. It represents the reduction in value of the asset.
Capital Cost Allowance (CCA)
Capital Cost Allowance (CCA)
The depreciation expense method used in Canada to calculate taxable income. It allows businesses to deduct a portion of the cost of assets each year.
Adjusted Trial Balance
Adjusted Trial Balance
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Contra Asset Account
Contra Asset Account
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What is the Canadian depreciation method for calculating taxable income?
What is the Canadian depreciation method for calculating taxable income?
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What is the process of allocating the cost of an intangible asset over its useful life?
What is the process of allocating the cost of an intangible asset over its useful life?
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