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.

---

Definitions:

Seafloor Spreading

The process by which new oceanic crust is formed at mid-ocean ridges and slowly moves away from the ridge, contributing to continental drift.

Continental Drift

The theory that Earth's continents have moved over geologic time relative to each other, thus appearing to drift across the ocean bed.

Mid-Atlantic Ridge

A continuous underwater mountain range in the Atlantic Ocean, formed by tectonic plate divergence.

Submarine Mountain

An underwater mountain, formed by volcanic activity or tectonic movements, rising significantly above the surrounding seafloor.