A Book Manufacturing Company Sells Equipment for $450,000 When the Book

question 78

Multiple Choice

A book manufacturing company sells equipment for $450,000 when the book value of the equipment is $400,000. The company would record the extra $50,000 as:

• A) a gain, increasing net income and stockholders' equity.
• B) revenue, increasing net income and stockholders' equity.
• C) cash, increasing assets and stockholders' equity.
• D) accumulated depreciation, increasing assets and stockholders' equity.

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Definitions:

Place Or Situation

The specific setting or context in which an event occurs, influencing its outcome or the behavior of individuals.

Cognitive Psychologists

Professionals who specialize in the scientific study of mind and mental function, including learning, memory, perception, and thought processes.

Cognitive Traps

Cognitive traps are patterns of thought that are consistently negative or irrational, leading to inaccurate perceptions or poor decision making.

Unrealistic Standards

Expectations or criteria that are excessively high or unattainable, often leading to disappointment or failure.