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 are the three sections on the statement of financial position?
A) asset section, liability section, and contributed surplus section
B) equity section, liability section, and asset section
C) financing section, operating section and investing section
D) operating section, retained earnings section, and non-operating section

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 are the three sections on the statement of financial position?
A) asset section, liability section, and contributed surplus section
B) equity section, liability section, and asset section
C) financing section, operating section and investing section
D) operating section, retained earnings section, and non-operating section

Quizplus · Accepted Answer

The three sections on the statement of financial position (balance sheet) are the asset section, liability section, and equity section. These sections provide a snapshot of a company's financial health, showing what the company owns, owes, and the amount invested by shareholders.

Cost of the Asset$100,000