Apha Limited Acquired the Net Assets of Beta Limited

question 25

Multiple Choice

Apha Limited acquired the net assets of Beta Limited. Alpha Limited provided an item of equipment as part of the consideration. The fair value of the equipment was $26 000. It cost $40 000 and had a carrying amount of $24 000. Which of the following entries appropriately reflects the gain or loss on the equipment?

• A) DR Loss on sale $2000
• B) CR Loss on sale $2000
• C) CR Gain on sale $2000
• D) Dr Gain on sale $2000.

Grasp the impact of changes in consumer income on budget lines and consumer choices.

Comprehend the significance of the production possibilities curve (PPC) and what points on, inside, and outside the curve represent.

Recognize the concepts of economic efficiency, unemployment, and the potential for economic growth.

Understand the difference between economic resources and non-resources, especially the role of money in the economy.

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Definitions:

Random Sampling

A method in statistics for selecting a sample from a population in such a way that every individual has an equal chance of being chosen.

Overconfidence

An unjustified belief in one's abilities, knowledge, or skills, often leading to taking greater risks.

Psychology Test

Standardized assessments used to evaluate mental processes, behaviors, personality, and cognitive abilities.

Placebo Effect

A phenomenon in which a person experiences a physiological or psychological improvement after being administered a treatment with no therapeutic value.