Question
1. Why does the Canada Revenue Agency (CRA) not allow you to deduct the entire cost of a newly purchased capital item like a vehicle
1. Why does the Canada Revenue Agency (CRA) not allow you to deduct the entire cost of a newly purchased capital item like a vehicle or building in the year It was purchased for tax purposes? What is the accounting term called for this partial deduction approach?
2. Why were you asked to Stress Test various aspects of vour business? What is the purpose of such an exercise?
3. What is the purpose of liquidity ratios to you as a business owner and to the bank official who is reviewing your business plan?
4.What does the term Current Ratio mean? How is it calculated?
5. What does the Debt to Equity ratio measure? How is it calculated?
6. Why would a financial institution like a bank be interested in a company's cash Flow statement?
7. What is the purpose of a Cash Flow Statement and what does it show?
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