If a Plant Asset Is Retired Before It Is Fully

question 291

Multiple Choice

If a plant asset is retired before it is fully depreciated and no salvage or scrap value is received

• A) a gain on disposal will be recorded.
• B) phantom depreciation must be taken as though the asset were still on the books.
• C) a loss on disposal will be recorded.
• D) no gain or loss on disposal will be recorded.

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Definitions:

Trust the Process

A phrase encouraging belief in and adherence to a specific plan or system, despite potential uncertainty or slow progress.

Electronic Data Interchange (EDI)

The electronic transfer of business information using a standardized format, allowing different systems to communicate directly with each other.

Process Cycle Time

measures the total time taken to complete a business process from start to finish, indicating process efficiency.

Large Amounts

Refers to significantly higher quantities or volumes of items, resources, or data, often requiring special management or consideration.