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%
-Which of the following is a current liability?
A) marketable securities
B) prepaid expenses
C) mortgage debt
D) accrued expenses

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%
-Which of the following is a current liability?
A) marketable securities
B) prepaid expenses
C) mortgage debt
D) accrued expenses

Quizplus · Accepted Answer

Accrued expenses are considered a current liability because they represent amounts owed for goods or services received but not yet paid for within the current accounting period or within one year.

Cost of the Asset$100,000