Asked by Shiva Ghahramani on May 23, 2024
Verified
Though a piece of equipment is still being used, the equipment should be removed from the accounts if it has been fully depreciated.
Fully Depreciated
The status of an asset after its cost has been completely allocated over its useful life, leaving it with no book value.
- Acquire knowledge on the accounting processes involved in the disposal, exchange, and sale of fixed assets.
Verified Answer
DG
Dennis GithaigaMay 24, 2024
Final Answer :
False
Explanation :
Fully depreciating an asset does not mean it should be removed from the accounts. It simply means its cost has been fully allocated over its useful life, but it can still be used and should remain on the balance sheet at its residual value until disposed of.
Learning Objectives
- Acquire knowledge on the accounting processes involved in the disposal, exchange, and sale of fixed assets.