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

question 80

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, property taxes, or insurance coverage.

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Definitions:

Infectious Agents

Microorganisms or pathogenic entities, such as viruses, bacteria, fungi, and parasites, that can cause disease.

Medical Assistant

A multi-skilled healthcare professional who supports medical practice by performing various administrative and clinical tasks.

Examining Table

A piece of equipment used in medical settings, designed for patients to sit or lie on during a medical examination or procedure.