Which of the Following Statements Is NOT True When a Fully

question 145

Multiple Choice

Which of the following statements is NOT true when a fully depreciated long-lived asset is retired?

• A) The long-lived asset's carrying amount is equal to its estimated residual value.
• B) The accumulated depreciation account is debited.
• C) The asset account is credited.
• D) The long-lived asset's original cost equals its carrying amount.

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Definitions:

Conservative

A risk-averse approach, especially in investment or financial strategies, focusing on preserving capital and maintaining a low risk profile.

Withdraw

The action of removing funds from an account or investment.

Compound Rate

The rate at which interest is calculated on the initial principal and also on the accumulated interest of previous periods.

Annually

Occurring once every year or relating to a period of one complete year.