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 section includes grants receivable in an NFP organization?
A) current assets
B) capital assets
C) long-term liabilities
D) current liabilities

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 section includes grants receivable in an NFP organization?
A) current assets
B) capital assets
C) long-term liabilities
D) current liabilities

Quizplus · Accepted Answer

Grants receivable by a not-for-profit (NFP) organization are typically recognized as current assets. This is because they are expected to be received within one year and used for operational purposes, making them a form of receivable similar to accounts receivable.

Cost of the Asset$100,000