The Book Value of an Asset Will Equal Its Fair

question 139

Multiple Choice

The book value of an asset will equal its fair value at the date of sale if

• A)a gain on disposal is recorded.
• B)no gain or loss on disposal is recorded.
• C)the plant asset is fully depreciated.
• D)a loss on disposal is recorded.

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Definitions:

Merchandise Available for Sale

The total quantity of goods that a retailer has on hand and ready to sell to customers.

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period.

Merchandise Inventory

Goods that a retail or wholesale company intends to sell to customers for a profit, listed as a current asset on the balance sheet.

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within a year or the operating cycle, whichever is longer.