Glossary: C

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Canada Pension Plan (CPP)

The Canada Pension Plan is a mandatory contributory pension: employees and employers each contribute on earnings, and th…

Canadian-Controlled Private Corporation (CCPC)

A CCPC is a private corporation resident in Canada that is not controlled by non-residents or public companies, and it q…

Capital Cost Allowance (CCA)

Capital cost allowance is the tax deduction that lets you write off the cost of business assets over several years inste…

Capital Dividend Account (CDA)

The capital dividend account is a notional tax account that lets a private corporation pay out certain amounts, mainly t…

Capital Expenditure (CapEx)

A capital expenditure is money spent to acquire or improve a long-lived asset, capitalised and depreciated over time rat…

Capital Gain

A capital gain is the profit from selling a capital asset, such as shares, real estate or a business, for more than its …

Capital Loss

A capital loss occurs when you sell a capital property for less than its adjusted cost base, and it can be used to offse…

Cash Flow

Cash flow is the movement of money into and out of your business over a period, and it determines whether you can actual…

Chart of Accounts

A chart of accounts is the organised list of every account a business uses to record transactions, grouped into assets, …

Clearance Certificate

A clearance certificate is CRA confirmation that a deceased person's or a business's taxes are paid, protecting the lega…

Collateral

Collateral is an asset a borrower pledges to a lender as security for a loan, which the lender can seize if the borrower…

Contra Account

A contra account is an account that offsets another account, carrying an opposite balance to reduce the gross value of a…

Corporate Bylaws

Corporate bylaws are the internal rules a corporation adopts to govern how it operates, covering directors, officers, me…

Corporate Tax

Corporate tax is the income tax a corporation pays on its profits, at combined federal and provincial rates, reported an…

Cost of Goods Sold (COGS)

Cost of goods sold is the direct cost of producing or purchasing the goods a business sold in a period, subtracted from …

CRA Audit

A CRA audit is a systematic examination of a taxpayer's books and records to verify that income, deductions and credits …

Credit Note

A credit note is a document a seller issues to reduce or reverse a previously issued invoice, for returns, overcharges o…

Current Ratio

The current ratio measures short-term liquidity by dividing current assets by current liabilities, showing whether a bus…

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