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 do typical current assets include?
A) cash, trade receivables, inventories
B) prepaid expenses, land, cash
C) trade receivables, inventories, research and development
D) cash, trade receivables, equipment

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 do typical current assets include?
A) cash, trade receivables, inventories
B) prepaid expenses, land, cash
C) trade receivables, inventories, research and development
D) cash, trade receivables, equipment

Quizplus · Accepted Answer

Typical current assets include cash, trade receivables, and inventories because they are assets expected to be converted into cash, sold, or consumed either in a year or in the operating cycle of a business, whichever is longer.

Cost of the Asset$100,000