A Company Sold an Unused Building at a Loss

question 38

Multiple Choice

A company sold an unused building at a loss. The loss from this event would be shown as:

• A)a normal business occurrence requiring an adjustment to the beginning balance in Retained Earnings.
• B)other gains and losses.
• C)an extraordinary item.
• D)a prior- period adjustment.

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Definitions:

Organization Efficiency

The ability of an organization to achieve its goals with minimal waste of resources, including time, money, and labor.

Bystander Apathy

The phenomenon where individuals are less likely to offer help to a victim when other people are present, often attributed to the diffusion of responsibility.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Agricultural Societies

Communities whose economy and way of life are primarily based on agriculture and farming practices.