Cost of the asset$100,000
Life of the asset 5 years
Depreciation rate20%
Capital cost allowance rate 50%
Residual value of the asset nil
Income tax rate 50%
-What part of the balance sheet contains marketable securities?
A) the revenue accounts
B) the current liability accounts
C) the current asset accounts
D) the non-current asset accounts

Question

Cost of the asset$100,000 
Life of the asset 5 years 
Depreciation rate20% 
Capital cost allowance rate 50% 
Residual value of the asset nil 
Income tax rate 50%
-What part of the balance sheet contains marketable securities?
A) the revenue accounts
B) the current liability accounts
C) the current asset accounts
D) the non-current asset accounts

Quizplus · Accepted Answer

Marketable securities are considered liquid assets and are therefore classified as current assets on a company's balance sheet. They are easily convertible into cash within a year.

Cost of the Asset$100,000