If a Fully Amortized Asset with No Residual Value Is

question 14

Multiple Choice

If a fully amortized asset with no residual value is retired without receiving any cash on retirement:

• A)a gain on disposal will be recorded.
• B)amortization must be recorded as though the asset were still on the books.
• C)a loss on disposal will be recorded.
• D)no gain or loss on disposal will be recorded.

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Definitions:

Automatic Pilot

A mode of operation where tasks are performed unconsciously or without active thought, often used metaphorically to describe habitual or rote behavior.

Mishaps

Unfortunate accidents or bad luck incidents that result in damage or injury.

Serious Errors

Significant mistakes or oversights that can have substantial consequences or impacts.

Reasoning

The drawing of conclusions or inferences from observations, facts, or assumptions.