Which of the Following Statements Is Incorrect

question 49

Multiple Choice

Which of the following statements is incorrect?

• A)Intangible assets are to be derecognised when there are no expected future benefits from the asset.
• B)Amortisation of an intangible with a finite useful life does not cease when the asset becomes temporarily idle.
• C)Amortisation of an intangible with a finite useful life ceases when the asset is retired from active use.
• D)Gains or losses on disposal are calculated as the difference between the proceeds on disposal and the carrying amount at point of sale.

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Definitions:

Business Trip

A journey taken for work or professional purposes, often involving travel outside of the usual workplace.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to undertake an action.

Monetary Costs

The financial expenses incurred in the production of a good or service, including raw materials, labor, and other expenditures that can be measured in monetary terms.

Lost Options

Alternatives forgone when a decision is made, often considered in opportunity cost analysis.