The amortization expense may be used for ________ but for ________,the Canada Revenue Agency (CRA)requires companies to use Capital Cost Allowance (CCA).
A) asset valuation; financial reporting purposes
B) tax purposes; financial reporting purposes
C) financial reporting purposes; tax purposes
D) the income statement; the balance sheet

Question

Quizplus · Accepted Answer

Amortization expense is used for financial reporting purposes to spread the cost of an intangible asset over its useful life. However, for tax purposes, the Canada Revenue Agency (CRA) requires companies to use Capital Cost Allowance (CCA) to calculate deductions for the depreciation of tangible and intangible assets.

The Amortization Expense May Be Used for ________ but for ________,The

The Amortization Expense May Be Used for but for ,The