Question:
Persons carrying on a business have no obligation to keep records.
Response:
True
False
A cashbook has separate columns for cash receipts and cash disbursements.
A well maintained cashbook eliminates the need to keep original source documents.
If you generate records using electronic methods, you can destroy the electronic records as long as a paper copy is kept.
On woodlots where operations are carried out in such a way that the woodlot is not a farming business, income must be reported using the accrual method.
When timber is removed from a woodlot, a deduction against income may be claimed.
The timing of claiming costs such as seedlings and planting, depends on the method of income accounting.
If money is borrowed to earn income from a business or property, the interest paid may be claimed as a deductible expense.
Examples of capital assets include (check all that apply)
light bulb,
a woodlot,
machine oil,
new barn,
air filters,
tractor chains
Natural Resources