To Account for the Disposal of a Plant Asset,the Cost

question 178

True/False

To account for the disposal of a plant asset,the cost of the asset and its related accumulated depreciation are removed from the books.

---

Definitions:

Functional Currency

The form of money used in the main economic region where a business is active and conducts its dealings.

Net Exchange Differences

The net result of gains or losses on foreign currency transactions and translation of foreign operations, reflecting the impact of exchange rates fluctuations on financial statements.

Financial Instruments

Contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Revaluation Gain

An increase in the value of an asset over its previously recorded book value, recognized after a revaluation process.