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 long-term debt?
A) a mortgage
B) a note payable due in six months
C) accruals
D) trade and other payables

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 long-term debt?
A) a mortgage
B) a note payable due in six months
C) accruals
D) trade and other payables

Quizplus · Accepted Answer

A mortgage is considered a long-term debt because it is typically paid off over several years or decades, unlike the other options which are short-term liabilities.

Cost of the Asset$100,000