4 Canadian tax & accounting terms starting with L
Plain-language definitions, each with the CRA rule it comes from and the filings it affects.
Liability
A liability is a financial obligation a business owes to others, from supplier bills and loans to taxes payable and deferred revenue.
Lifetime Capital Gains Exemption (LCGE)
The lifetime capital gains exemption shelters a large amount of capital gain, over $1. 25 million, on the sale of qualifying small business corporation shares or farm and fishing property.
Line of Credit
A line of credit is a flexible loan that lets a business borrow up to a set limit as needed, repay, and re-borrow, paying interest only on the amount used.
Liquidity
Liquidity is how easily a business can meet its short-term obligations and convert assets to cash without loss, a core measure of financial health.
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