Which of the Following Is Correct When Recording the Disposal

question 28

Multiple Choice

Which of the following is correct when recording the disposal of equipment for a gain?

• A)The company will record a debit to a gain account.
• B)The company will record a credit to the equipment account for the asset's book value.
• C)The company will record a debit to accumulated depreciation for the total depreciation accumulated to the date of disposal.
• D)The company will record a credit to cash.

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Definitions:

Bar Chart

A graphical representation of data using bars of different heights or lengths to show the values of various categories.

Frequency Distribution

A mathematical function showing the number of instances in which a variable attains each of its possible values.

Relative Frequency

The ratio of the number of times a particular value appears in a dataset to the total number of observations.