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:

Noncash Investing

Transactions that involve the exchange of non-monetary assets or liabilities for other non-monetary assets or liabilities, without the use of cash.

Net Increase in Cash

The total change in cash and cash equivalents indicating the difference between cash inflows and outflows over a period.

Presentation of Activities

The structured detailing of actions taken or planned by an organization, often applied in the context of reporting or strategic planning.

Operating Investing

This key term is not clear; it may refer to investing activities in the context of a business's operations, but without further context, a precise definition cannot be provided.