When a Company Sells an Asset at a Gain, Which

question 82

Multiple Choice

When a company sells an asset at a gain, which of the following is true?

• A) Proceeds from the sale exceeded the historical cost of the asset on the statement of financial position.
• B) Proceeds from the sale were less than the book value of the asset on the statement of financial position.
• C) Proceeds from the sale exceeded the book value of the asset on the statement of financial position.
• D) Proceeds from the sale are equal to the historical cost of the asset on the statement of financial position.

---

Definitions:

Cost-Oriented

A pricing strategy where the price of a product or service is determined by adding a profit margin to its production cost.

Profit-Oriented

Focused on achieving financial gain or maximizing profits as the primary goal of business operations.

Cost-Plus-Fixed-Fee Pricing

A pricing strategy where the selling price is determined by adding a fixed fee to the cost of the product or service, covering both the cost and a guaranteed profit margin.

Target Return

A specific profit objective set by a business, often used to guide pricing and investment strategies to meet financial goals.