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 assets that are expected to be converted into cash within one year?
A) current assets
B) intangible assets
C) deferred assets
D) non-current assets

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 assets that are expected to be converted into cash within one year?
A) current assets
B) intangible assets
C) deferred assets
D) non-current assets

Quizplus · Accepted Answer

Current assets are assets that are expected to be converted into cash within one year or within the operating cycle of the business, whichever is longer. Examples include cash, accounts receivable, and inventory.

Cost of the Asset$100,000