Which Statement Is Not Correct

question 59

Multiple Choice

Which statement is not correct?

• A) If an asset is scrapped as worthless before it is fully depreciated its original cost represents an expense on disposal.
• B) If an asset is scrapped as worthless before it is fully depreciated its carrying amount represents an expense on disposal.
• C) 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.
• D) 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.

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Definitions:

Union Grievances

Formal complaints raised by unions on behalf of their members regarding violations of contract terms or workplace policies.

Collective Agreements

Legally binding agreements between employers and a group of employees, often negotiated by unions, setting terms of employment.

Industrial Unions

Unions that organize workers across various trades and industries according to the industry in which they work.

Geographical Area

A specific portion of the Earth’s surface defined by natural or artificial boundaries.