Which of the Following Is Correct for a Fully Depreciated

question 79

Multiple Choice

Which of the following is correct for a fully depreciated asset?

• A)market value is zero.
• B)market value is greater than book value.
• C)book value is greater than market value.
• D)the relationship between market and book values is indeterminable.

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Definitions:

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, thereby preparing the temporary accounts for the next accounting period.

Adjusted Trial Balance

A trial balance taken after adjusting entries have been made to ensure total debits equal total credits.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent owner's equity account, preparing the accounts for the next period.

Adjusted Trial Balance

A record comprising all accounts with their respective balances, updated following adjustment entries, which serves as a foundation for creating financial reports.