Which of the following is not true about CCA expense?
A) It is sometimes called a tax shield.
B) It usually causes an increase in taxes.
C) Businesses usually want the largest possible CCA deduction.
D) The expense deduction results from a cash expenditure.

Question

Quizplus · Accepted Answer

CCA expense is a tax deduction that reduces taxable income, therefore it usually results in a decrease in taxes.

Which of the Following Is Not True About CCA Expense