Upon the Disposal of an Asset,if the Proceeds Are Greater

question 17

Multiple Choice

Upon the disposal of an asset,if the proceeds are greater than the carrying value of the asset,the company must

• A)recognize a loss.
• B)recognize a gain.
• C)adjust the accumulated depreciation account so the carrying value equals the proceeds.
• D)adjust the carrying value to market value.

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Definitions:

Hemocoel

The primary body cavity of most invertebrates, particularly those with an open circulatory system, containing circulating fluid (hemolymph) that directly bathes the organs.

Closed Circulatory System

A cardiovascular system where blood is enclosed within blood vessels and circulated throughout the body without direct contact with body tissues.

Amphibian Heart

A three-chambered heart found in amphibians, featuring two atria and one ventricle for circulation.

Circulatory System

The body system responsible for the transport of blood, nutrients, gases, and wastes to and from cells, facilitating the maintenance of internal homeostasis.