When discarding equipment,depreciation need not by updated.

Question

Quizplus · Accepted Answer

When discarding equipment, depreciation must be updated to accurately reflect the remaining value of the equipment on the company's books. This helps to prevent errors in financial reporting and ensures that the company's assets are properly valued. Failure to update depreciation can lead to overstatement or understatement of assets, which can have negative consequences for the company's financial health.

When Discarding Equipment,depreciation Need Not by Updated