A Gain on Disposal of an Asset Is Listed As

question 133

Multiple Choice

A gain on disposal of an asset is listed as:

• A) a liability on the balance sheet.
• B) an asset on the balance sheet.
• C) other expense on the income statement.
• D) other income on the income statement.

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Definitions:

Depletion Rate

The rate at which natural resources are consumed or used, often applied in accounting to allocate the cost of a natural resource over its useful life.

Residual Value

The estimated salvage value of an asset at the end of its useful life, important for depreciation calculations.

Oil Well

A drilling operation established for the extraction of oil from the earth, constituting a significant part of the oil and gas industry.

Amortization Expense

The methodical distribution of the expense of an intangible asset throughout its lifespan.