Activities Involved with the Fixed Assets Disposal Phase of the Fixed

question 25

Multiple Choice

Activities involved with the fixed assets disposal phase of the fixed assets processes include all of the following, except:

• A)Adjusting periodic depreciation
• B)Disposed assets are removed from the fixed asset subsidiary ledger
• C)Gains or losses resulting from disposal are computed
• D)The depreciation amounts related to the disposed assets are removed from the depreciation schedule and the fixed asset subsidiary ledger

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Definitions:

Consolidated Statement

Financial statements that aggregate the financial information of a parent company and its subsidiaries into one document.

Acquisition

The process of obtaining control of another company or business entity through purchase or merger.

Carrying Amount

The book value of an asset or liability on a company's financial statement, reflecting its accounting value rather than market value.

Investing Cash Flow

Cash inflows and outflows related to transactions involving the acquisition and disposal of long-term assets and investments not included in cash equivalents.