Because the Failure to Record Disposals of Property, Plant, and Equipment

question 95

Multiple Choice

Because the failure to record disposals of property, plant, and equipment can significantly affect the financial statements, the search for unrecorded disposals is essential.Which of the following is not a procedure used to verify disposals?

• A)Make inquiries of management and production personnel about the possibility of the disposal of assets.
• B)Review whether newly acquired assets replace existing assets.
• C)Test the valuation of fixed assets recorded in prior periods.
• D)Review plant modifications and changes in product line, taxes, or insurance coverage.

---

Definitions:

Voluntary Control

The ability to consciously regulate one's own thoughts, feelings, or actions.

Conversion Disorder

A psychological condition in which emotional distress or unconscious conflict is expressed through physical symptoms without a medical cause.

Functional Neurological

Pertaining to a category of medical conditions where patients exhibit neurological symptoms, such as tremors or speech issues, without a clear structural cause.

Social Isolation

A state of complete or near-complete lack of contact between an individual and society, often leading to feelings of loneliness.