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 is the opposite of a prepaid expense?
A) intangible asset
B) accounts receivable
C) capital asset
D) accrued liability

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 is the opposite of a prepaid expense?
A) intangible asset
B) accounts receivable
C) capital asset
D) accrued liability

Quizplus · Accepted Answer

The opposite of a prepaid expense, which is an expense paid in advance and recorded as an asset until it is actually incurred, is an accrued liability. An accrued liability represents an expense that has been incurred but not yet paid.

Cost of the Asset$100,000