Accounting for IGCSE & O level - Accounting Procedures (Section 17 - No. 43)
What is the impact on the company's assets if an asset is scrapped and has no salvage value?
Assets decrease.
Assets increase.
Assets remain unchanged.
Cash will increase.
Explanation
When an asset is scrapped, it has no future value, and it is removed from the financial statements, reducing total assets.
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