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 term refers to payments made for services that have NOT yet been received?
A) accrued liabilities
B) prepaid expenses
C) accrued expenses
D) prepaid liabilities

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 term refers to payments made for services that have NOT yet been received?
A) accrued liabilities
B) prepaid expenses
C) accrued expenses
D) prepaid liabilities

Quizplus · Accepted Answer

Prepaid expenses refer to payments made for services or goods that have not yet been received or used. These are considered assets on a balance sheet because they represent future economic benefits.

Cost of the Asset$100,000