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 debts that are NOT due for at least one year?
A) retained liabilities
B) capital stock
C) current liabilities
D) long-term borrowings

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 debts that are NOT due for at least one year?
A) retained liabilities
B) capital stock
C) current liabilities
D) long-term borrowings

Quizplus · Accepted Answer

Long-term borrowings refer to debts that are not due for payment within the next year. These are contrasted with current liabilities, which are due within a year.

Cost of the Asset$100,000