Which of the Following Explanations Might Satisfy an Auditor Who

question 53

Multiple Choice

Which of the following explanations might satisfy an auditor who discovers significant debits to an accumulated depreciation account?

• A)Several fully depreciated assets were retired during the year.
• B)Prior years' depreciation charges were erroneously understated.
• C)A reserve for possible loss on retirement has been recorded.
• D)An asset has been recorded at its fair value.

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Definitions:

Saturation

A term that may refer to the point at which a solution can absorb no more of a substance or when an object is fully soaked with a liquid.

Osteoporosis

A bone disease that occurs when the body loses too much bone, makes too little bone, or both, leading to fragile and easily broken bones.

Calcium Deficiency

A state where the body lacks enough calcium, leading to weakened bones and other health issues.

Bone Mass

The amount of mineral matter per square centimeter of bones. It is a key indicator of bone strength and health.