Which of the Following Statements Is Incorrect

question 51

Multiple Choice

Which of the following statements is incorrect?

• A) If an asset is scrapped as worthless before it is fully depreciated its carrying amount represents an expense on disposal.
• B) An amount paid to remove an asset that is scrapped before it is fully depreciated is an addition to the expense recorded on its disposal.
• C) When an asset is scrapped during the year an entry should be made to record depreciation expense for the portion of the year before scrapping.
• D) If an asset is scrapped as worthless before it is fully depreciated its original cost represents an expense on disposal.

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Definitions:

English Colony

A territory under the control and governance of England or the British Empire, established from the 16th to the 19th centuries in various parts of the world.

Currency

The system of money in general use in a particular country or economic context.

Chesapeake Colonies

Refers to the British colonies in North America that were along the Chesapeake Bay, primarily Virginia and Maryland, known for their tobacco economies.

Seventeenth-Century

The period from 1601 to 1700, characterized by significant cultural, political, and scientific developments in Europe and the beginnings of European colonization in the Americas.