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:

Eliminate Unrecognized

A process in accounting, often related to consolidation, where unrealized profits, losses, or transactions within or among entities are removed from financial statements.

Intra-entity Gross Profit

The profit recognized on transactions conducted within the same entity, which may need to be eliminated in consolidated reporting.

Intra-entity Gross Profit

The profit recognized from transactions within the same company, affecting consolidated financial statements.

Eliminate Unrecognized

The process of removing gains, losses, or other items that have not been realized or acknowledged formally from the financial statements.