A fully depreciated asset must be:
A) removed from the books.
B) kept on the books until sold or discarded.
C) disclosed only in the notes to the financial statements.
D) recognized on the income statement as a loss.

Question

Quizplus · Accepted Answer

A fully depreciated asset should be kept on the books until it is sold, disposed of, or retired. While it no longer has any useful value, it has had an impact on the company's financial statements in the past and should continue to be reflected in the company's fixed asset listing until it leaves the company's ownership. The asset should not be removed from the books entirely or recognized on the income statement as a loss. It should also not just be disclosed in the notes to the financial statements but still remain on the fixed asset listing.

A Fully Depreciated Asset Must Be