Asked by kiasjah mathews on May 16, 2024
Verified
An asset can be disposed of by all of the following except:
A) Discarding it.
B) Selling it.
C) Exchanging it for another asset.
D) Donating it to charity.
E) Continuing to use it after it is fully depreciated.
Fully Depreciated
Term used for an asset that has reached the end of its useful life, with its cost fully allocated across the accounting periods it was in use.
Disposed
This term refers to the action of getting rid of an asset or property, often through a sale, exchange, retirement, or destruction.
- Record and understand the transactions involving the purchase and disposition of equipment.
Verified Answer
KS
Karanveer SinghMay 21, 2024
Final Answer :
E
Explanation :
Continuing to use an asset after it is fully depreciated does not involve disposing of the asset. The other choices all involve the disposal of the asset.
Learning Objectives
- Record and understand the transactions involving the purchase and disposition of equipment.