When a Plant Asset Is Disposed Of,the Business Must ________

question 3

Multiple Choice

When a plant asset is disposed of,the business must ________.

• A) immediately replace it
• B) ensure that the plant asset is obsolete or worn out
• C) comply with the conservatism principle and record losses but not gains
• D) bring the depreciation up to date

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Definitions:

Global Trade

The exchange of goods, services, and capital across international borders or territories.

Security

Involves measures and protocols put in place to protect assets, information, and operations from theft, damage, and interruptions.

Efficient Flow

The optimized movement of goods, information, and financial resources through a supply chain, aiming to reduce costs and improve speed without sacrificing quality.

Factor Endowment Theory

An economic theory that suggests a country's trade patterns are primarily determined by its factor endowments, such as land, labor, and capital, rather than its productivity levels.