Accounting for IGCSE & O level - Accounting Procedures (Section 25 - No. 25)
If a company sells an asset, what would happen to the accumulated depreciation account?
It would be increased.
It would be decreased.
It would be closed out and removed.
It has no relation to the sale of the asset.
Explanation
When an asset is sold, the accumulated depreciation related to that asset is removed from the accounting records.
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