If the Client Fails to Record Disposals of Property, Plant

question 69

Multiple Choice

If the client fails to record disposals of property, plant, and equipment, both the original cost of the asset account and the net book value will be incorrect.

• A) The original cost will be overstated indefinitely, and the net book value will be overstated until the asset is fully depreciated.
• B) The original cost will be overstated indefinitely, and the net book value will be understated until the asset is fully depreciated.
• C) Both will be overstated indefinitely.
• D) The original cost will be overstated indefinitely, and the net book value will be understated indefinitely.

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Definitions:

Attribution

The process by which individuals explain the causes of behavior and events, either attributing them to internal dispositions or external situations.

Central Route

A method of persuasion that involves thoughtful consideration of the arguments and evidence presented.

Role Playing

An educational or therapeutic technique in which individuals act out roles in particular scenarios to understand those situations or practice responding to them.

Fundamental Attribution Error

The bias of attributing others' actions to their character or personality while underestimating situational influences.