A Gain or Loss on Disposal of a Plant Asset

question 10

Multiple Choice

A gain or loss on disposal of a plant asset is determined by comparing the

• A) replacement cost of the asset with the asset's original cost.
• B) book value of the asset with the asset's original cost.
• C) original cost of the asset with the proceeds received from its sale.
• D) book value of the asset with the proceeds received from its sale.

---

Definitions:

Metrics

Standards of measurement that provide insights or data to track and assess the status or performance of various aspects within an organization.

Effective

Having an intended or expected outcome; producing a decisive result or effect.

Efficient

Achieving maximum productivity with minimum wasted effort or expense.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to its net income or loss.