A Gain on the Sale of an Asset Occurs When

question 114

Multiple Choice

A gain on the sale of an asset occurs when:

• A)the cash received is less than the book value of the asset.
• B)the book value is equal to the cost of the asset,and the cash received is less than the cost of the asset.
• C)the cash received is greater than the book value of the asset.
• D)None of these answers is correct.

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Definitions:

Relative Deprivation

A sense of dissatisfaction or resentment that arises from the belief that one is worse off compared to others in a similar situation or compared to societal norms.

Happiness Set Point

The theory suggesting individuals have a baseline level of happiness which, despite changes or life events, tends to return to its original level.

Adaptation-Level

A theory suggesting that people adapt to new stimuli and events, eventually perceiving them as normal and using this new norm as a baseline for future judgments.

Emotional Satisfaction

A state of contentment and fulfillment derived from emotional experiences.