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Celina is currently working on the audit of a client's property, plant and equipment accounts, and has turned her attention to asset retirements and disposals. Celina asks her supervisor what specifically she should look for in these areas. Which of the following represents the supervisor's most appropriate response? Make sure that for asset retirements and disposals, you check to make sure there is a proportionate decrease in interest expense related to long-term debt that was used to purchase these assets. Check to make sure that for assets that were sold, the appropriate gains and losses are recorded correctly on the client's balance sheet. For each asset retirement and disposal, you should check to ensure that asset and accumulated depreciation accounts have been closed properly. Pay attention to make sure that for each retirement and disposal, the appropriate asset and accumulated depreciation accounts have been debited and credited respectively.

          Celina is currently working on the audit of a client's property, plant and equipment accounts, and has turned her attention to asset retirements and disposals. Celina asks her supervisor what specifically she should look for in these areas. Which of the following represents the supervisor's most appropriate response?
Make sure that for asset retirements and disposals, you check to make sure there is a proportionate decrease in interest expense related to long-term debt that was used to purchase these assets.
Check to make sure that for assets that were sold, the appropriate gains and losses are recorded correctly on the client's balance sheet.
For each asset retirement and disposal, you should check to ensure that asset and accumulated depreciation accounts have been closed properly.
Pay attention to make sure that for each retirement and disposal, the appropriate asset and accumulated depreciation accounts have been debited and credited respectively.

Celina is currently working on the audit of a client's property, plant and equipment accounts, and has turned her attention to asset retirements and disposals. Celina asks her supervisor what specifically she should look for in these areas. Which of the following represents the supervisor's most appropriate response?
Make sure that for asset retirements and disposals, you check to make sure there is a proportionate decrease in interest expense related to long-term debt that was used to purchase these assets.
Check to make sure that for assets that were sold, the appropriate gains and losses are recorded correctly on the client's balance sheet.
For each asset retirement and disposal, you should check to ensure that asset and accumulated depreciation accounts have been closed properly.
Pay attention to make sure that for each retirement and disposal, the appropriate asset and accumulated depreciation accounts have been debited and credited respectively.

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