If a Plant Asset Is Retired Before It Is Fully

question 145

Multiple Choice

If a plant asset is retired before it is fully depreciated, and the residual value received is less than the asset's book value,

• A) a gain on disposal occurs.
• B) a loss on disposal occurs.
• C) there is no gain or loss on disposal.
• D) additional depreciation expense must be recorded.

Understand the role of sales taxes in financial transactions and their impact on revenue recognition.

Recognize the importance of internal controls in payroll and the implications of post-retirement benefits on financial statements.

Comprehend the similarities in estimating expenses for warranties and bad debts and their impact on financial health.

Understand the concept and implications of economic growth.

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Definitions:

Slope

In linear regression, it quantifies the change in the dependent variable for a one-unit change in an independent variable.

Regression Line

A straight line that best fits the data in a scatter plot, showing the direction and strength of a relationship between variables.

Income

Money that an individual or business receives, typically in exchange for providing a good or service, or through investing.

Slope

In mathematics, the rate at which a line inclines or declines, indicating the steepness of the line.