Which three transaction types can you use to dispose of an asset? Each correct answer presents a complete solution.

Question

Options

• AProvision for reserve
• BWrite off
• CExtraordinary depreciation
• DSale
• EScrap

• A
  9% (2)
• B
  74% (17)
• C
  17% (4)

Explanation

BDE: There are three ways to create a disposal transaction: * Fixed Assets write-off This transaction is entered in the fixed assets journal, and the write-off transactions for the booked value and booked depreciation for the asset are created. The status of the asset changes to Written off * Leaving (sale) This transaction represents a fixed asset sale and can be entered in Accounts receivable or in the fixed assets journal. Several transactions are created in the ledger, based on the posting profile configuration. The status of the asset changes to Written off (sale). * Leaving (dismantlement) This transaction is entered in the fixed assets journal. Transactions are created in the ledger, and the remaining value of the asset after it has been dismantled is transferred to the warehouse. The status of the asset changes to Written off (dismantlement). DE: This information explains how to set up transactions for disposing of assets by selling or In the Fixed asset posting profiles form, on the Ledger accounts FastTab, select Disposal - sale and Disposal - scrap to set up postings to the ledger. For both transaction types, the ledger account is credited for the disposal value of the fixed asset.

No community discussion yet for this question.