If the Carrying Amount of an Asset Equals Its Selling

question 70

Multiple Choice

If the carrying amount of an asset equals its selling price at the date of sale, then

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

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Definitions:

Substantiation

The provision of evidence or proof to support a claim, allegation, or request, typically required in legal and financial contexts.

Limited Liability Companies

A business structure in the United States whereby the owners are not personally liable for the company's debts or liabilities.

Register

An official list or record, for example, of births, marriages, and deaths, legal transactions, or voters.

Voluntary Association

A group formed by individuals who voluntarily come together to pursue a common interest or goal.