Multiple Choice
If the client fails to record disposals of property, plant, and equipment, both the original cost of the asset account and the net book value will be incorrect.
A) The original cost will be overstated indefinitely, and the net book value will be overstated until the asset is fully depreciated.
B) The original cost will be overstated indefinitely, and the net book value will be understated until the asset is fully depreciated.
C) Both will be overstated indefinitely.
D) The original cost will be overstated indefinitely, and the net book value will be understated indefinitely.
Correct Answer:
Verified
Correct Answer:
Verified
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