Which of the Following Is Correct Regarding Gain or Loss

question 94

Multiple Choice

Which of the following is correct regarding gain or loss on disposal of a long-lived asset?

• A)Failure to report a gain on the sale of an asset results in an overstatement of net income.
• B)Failure to report a gain on the sale of an asset results in an understatement of stockholders' equity.
• C)Failure to report a loss on the sale of an asset results in an understatement of net income.
• D)Failure to report a loss on the sale of an asset results in an understatement of earnings per share.

---

Definitions:

Generative

Capable of producing or creating something new or different.

Semantic

Relating to meaning in language or logic, often pertaining to the interpretations and implications of words, phrases, signs, and symbols.

Cognitive Psychologists

Specialists in a subfield of psychology focused on studying mental processes such as perception, memory, thought, and problem-solving.

Social Psychologists

Researchers who study how individuals think, feel, and behave in social contexts.