Which of the Following Statements Is Not True When a Fully

question 62

Multiple Choice

Which of the following statements is not true when a fully depreciated plant asset is retired?

• A) The plant asset's book value is equal to its estimated residual value.
• B) The accumulated depreciation account is debited.
• C) The asset account is credited.
• D) The plant asset's original cost equals its book value.

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Definitions:

Unit Costs

The expense associated with creating, keeping, or buying a single unit of a good or service.

Direct Materials

Raw materials and components that are directly used in the manufacturing of a product and can be easily traced back to it.

Equivalent Unit

A concept in cost accounting used to allocate production costs between completed units and units still in process, by converting work-in-process units into a number of equivalent completed units.

Conversion Rate

A metric often used in marketing to denote the percentage of users or visitors who take a desired action, such as making a purchase.