If an Asset Is Scrapped Before Being Fully Depreciated

question 208

Multiple Choice

If an asset is scrapped before being fully depreciated:

• A) the company will incur a loss on the disposal.
• B) the equipment account will be credited.
• C) the accumulated depreciation account will be debited.
• D) all of the above will occur.

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Definitions:

LPC

Stands for Least Preferred Coworker, a concept used in Fiedler's Contingency Theory to determine leadership style by evaluating a leader's feelings toward the least preferred coworker.

Charismatic Leadership

A leadership style characterized by an individual's ability to inspire and motivate followers through personal charm and persuasion.

Merits

The qualities of being particularly good or worthy, especially so as to deserve praise or reward.

Demerits

The negative points or marks received for poor performance or misconduct.