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%
-Where are non-current liabilities and current liabilities included?
A) in the working capital section of the statement of financial position
B) in the asset section of the statement of financial position
C) in the retained earnings section of the statement of changes in equity
D) in the liability section of the statement of financial position

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%
-Where are non-current liabilities and current liabilities included?
A) in the working capital section of the statement of financial position
B) in the asset section of the statement of financial position
C) in the retained earnings section of the statement of changes in equity
D) in the liability section of the statement of financial position

Quizplus · Accepted Answer

Non-current liabilities and current liabilities are included in the liability section of the statement of financial position. This section is separate from assets, equity, and working capital calculations.

Cost of the Asset$100,000