If the Client Fails to Record Disposals of Property, Plant

question 69

Multiple Choice

If the client fails to record disposals of property, plant, and equipment, both the original cost of the asset account and the net book value will be incorrect.

• A) The original cost will be overstated indefinitely, and the net book value will be overstated until the asset is fully depreciated.
• B) The original cost will be overstated indefinitely, and the net book value will be understated until the asset is fully depreciated.
• C) Both will be overstated indefinitely.
• D) The original cost will be overstated indefinitely, and the net book value will be understated indefinitely.

---

Definitions:

Selection Bias

A statistical bias in which there is an error in choosing the individuals or groups to participate in a study, leading to results that are not representative of the broader population.

Intervention Bias

The tendency to intervene in situations where intervention may not be necessary or could lead to negative outcomes.

Open-Mindedness

The willingness to consider new ideas, points of view, and experiences without preconceived judgments.

Mental Present

The concept referring to the temporal window in which the consciousness operates, encompassing the immediate perception of stimuli at a given moment.