A Gain or Loss on Disposal of a Long-Lived Asset

question 82

Multiple Choice

A gain or loss on disposal of a long-lived asset is determined by comparing the

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

Understand the operational and legal foundations of various business structures including sole proprietorships, partnerships, and corporations.

Comprehend the significance and process of creating mission statements for businesses.

Know the challenges and failure rates of small businesses and strategies to mitigate these risks.

Acknowledge the role and impact of not-for-profit organizations in economic development through business incubators.

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Definitions:

Shift Inward

A decrease in the supply or demand of a product, represented by a leftward movement on a graph.

Physical Capital

Refers to the human-made resources used in the production of goods and services, such as machinery, buildings, and equipment.

Inefficiently

In a manner that does not make the best or optimal use of resources, leading to waste or suboptimal outcomes.

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another.