Which of the following statements is not correct?
A)The book value of a long-term asset is reduced each year as depreciation is recorded.
B)Buildings and trucks are examples of long-term assets.
C)Salvage value is computed by subtracting the accumulated depreciation from the cost of a long-term asset.
D)Generally accepted accounting principles require that the original cost of a long-term asset continue to appear in the asset account until the disposition of the asset.

Question

Quizplus · Accepted Answer

Salvage value is the estimated value of a long-term asset at the end of its useful life, and it is not computed by subtracting the accumulated depreciation from the cost of the asset. Salvage value is simply an estimate of what the asset will be worth when it is sold or disposed of at the end of its useful life.

Which of the Following Statements Is Not Correct