Of the following pairs of terms, which pair represents terms that are analogous for accounting work and for tax work?
A)Capital Cost and Net Book Value.
B)Amortization and Capital Cost Allowance.
C)Undepreciated Capital Cost and Acquisition Cost.
D)Capital Cost and Amortization.

Question

Quizplus · Accepted Answer

Amortization is the term used in accounting to refer to the gradual expensing of the cost of an asset over its useful life, while Capital Cost Allowance is the term used in tax law for the same concept. Therefore, these terms are analogous for accounting work and tax work. The other pairs do not represent terms that are analogous for accounting work and tax work.

Of the Following Pairs of Terms, Which Pair Represents Terms