CAF-8 · Chapter 8 · Question 7 of 10
An auditor is testing the depreciation of fully depreciated assets that are still in use. What is the correct accounting treatment for these assets?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) They should stay on the register at cost and accumulated depreciation, but no further depreciation should be charged.
Explanation
Assets still in use remain on the balance sheet at their historical cost and 100% accumulated depreciation. They are not depreciated further once their carrying amount reaches their residual value.
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