Government of Nova Scotia gov.ns.ca
gov.ns.ca Government of Nova Scotia Nova Scotia, Canada
Natural Resources and Renewables

Topics

Module 10: Introduction to Woodlot - Income Tax and Estate Planning - Part 1: Woodlot Income and Tax


LESSON THREE QUIZ

Based on your study of this lesson, please choose the best answer.

1. Persons carrying on a business have no obligation to keep records.

a) True
b) False

2. A cashbook has separate columns for cash receipts and cash disbursements.

a) True
b) False

3. A well maintained cashbook eliminates the need to keep original source documents.

a) True
b) False

4. If you generate records using electronic methods, you can destroy the electronic records as long as a paper copy is kept.

a) True
b) False

5. 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.

a) True
b) False

6. When timber is removed from a woodlot, a deduction against income may be claimed.

a) True
b) False

7. The timing of claiming costs such as seedlings and planting, depends on the method of income accounting.

a) True
b) False

8. If money is borrowed to earn income from a business or property, the interest paid may be claimed as a deductible expense.

a) True
b) False

9. Examples of capital assets include (check all that apply)
, and

a) light bulb,
b) a woodlot,
c) machine oil,
d) new barn,
e) air filters,
f) tractor chains

10. If money is borrowed to earn income from a business or property, the interest paid may be claimed as a deductible expense.

a) True
b) False