Multiple Choice
Which of the following explanations might satisfy an auditor who discovers significant debits to an accumulated depreciation account?
A) The prior year's depreciation charges were erroneously understated.
B) There were numerous fixed asset retirements during the year.
C) There were numerous fixed asset purchases during the year.
D) A reserve for possible loss on retirement has been recorded.
Correct Answer:
Verified
Correct Answer:
Verified
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