What is Capital Property?
Capital property is any asset held for investment or long-term use whose disposal produces a capital gain or loss rather than business […]
What is the Capital Dividend Account (CDA)?
The Capital Dividend Account is a notional CRA ledger that tracks amounts a private corporation can distribute to Canadian shareholders completely tax-free […]
What is Capital Cost Allowance (CCA)?
Capital Cost Allowance is the CRA’s system for deducting the cost of business assets over time, the tax equivalent of depreciation, applied […]
What is an Arm’s Length Transaction?
An arm’s length transaction is a deal between unrelated parties acting independently in their own interests, the standard the CRA uses to […]
What is Adjusted Cost Base (ACB)?
Adjusted cost base is the CRA’s measure of what was paid for a capital property, including acquisition costs and improvements, and it […]
What is Working Capital Management?
Working capital management is the active discipline of managing the timing of cash coming in and going out, to ensure the business […]
What is Working Capital?
Working capital is current assets minus current liabilities, the net short-term financial resources a business has available to fund its day-to-day operations. […]
What is Work in Progress (WIP)?
Work in progress is the value of work that has been started but not yet completed or billed, a balance sheet item […]
What is Trust Accounting?
Trust accounting is the strict segregation and tracking of client funds held in trust, a legal and regulatory requirement for lawyers, real […]
What is Revenue Recognition?
Revenue recognition is the accounting principle that determines when a sale is officially recorded, not when the invoice is sent or the […]
What does Retained Earnings vs Cash mean?
Retained earnings is the cumulative profit kept in the business since incorporation; cash is what is actually in the bank, and they […]
What is Profitability Analysis?
Profitability analysis examines where a business actually makes money, by product, service, customer, or channel, rather than simply confirming that the total […]