A Fully Depreciated Asset Must Be

question 52

Multiple Choice

A fully depreciated asset must be:

• A) removed from the books.
• B) kept on the books until sold or discarded.
• C) disclosed only in the notes to the financial statements.
• D) recognized on the income statement as a loss.

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Definitions:

Consolidated Equity

The total equity of a parent company and its subsidiaries after intercompany balances and transactions have been eliminated.

Equity Method

An accounting technique used in consolidating financial statements whereby an investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's net income or losses.

Voting Shares

Shares of a company's stock that grant the shareholder the right to vote on corporate matters.

Purchase

The acquisition of goods or services in exchange for money, contributing to a company's expenses.