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 liabilities include?
A) trade and other payables, accrued expenses, taxes payable
B) mortgage, bond payable, preferred shares
C) prepaid expenses, mortgage, share capital
D) notes payable, mortgage, bond payable

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 liabilities include?
A) trade and other payables, accrued expenses, taxes payable
B) mortgage, bond payable, preferred shares
C) prepaid expenses, mortgage, share capital
D) notes payable, mortgage, bond payable

Quizplus · Accepted Answer

Typical current liabilities include short-term obligations such as trade and other payables, accrued expenses, and taxes payable, which are due within one year.

Cost of the Asset$100,000