Which of the Following Statements Is Correct with Respect to the Sale

question 1

Multiple Choice

Which of the following statements is correct with respect to the sale of a depreciable asset?

• A)A gain occurs when the selling price exceeds book value.
• B)A sale for a gain results in a decrease in total assets.
• C)A sale for a loss results in an increase in total assets.
• D)A loss occurs when the selling price is more than book value.

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Definitions:

Fraudulent Acts

These refer to intentional deceptions made for personal gain or to harm another individual, often illegal and punishable under law.

Ethical Lapses

Instances where individuals or organizations violate moral principles, often leading to a loss of trust or legal consequences.

Sarbanes-Oxley Act

A U.S. federal law that was enacted on July 30, 2002, to protect investors from the possibility of fraudulent accounting activities by corporations.

Corporate Responsibility

A business model where companies integrate social and environmental concerns in their operations and interactions with stakeholders.