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 NOT a current asset?
A) prepaid expenses
B) cash
C) trade receivables
D) office equipment

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 NOT a current asset?
A) prepaid expenses
B) cash
C) trade receivables
D) office equipment

Quizplus · Accepted Answer

Office equipment is not a current asset because it is classified as a fixed asset or long-term asset due to its useful life being greater than one year. Current assets are assets that are expected to be converted into cash or used up within one year or one operating cycle, whichever is longer.

Cost of the Asset$100,000