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:

Inferiority

A feeling of being less than, not as important, or lacking in some way compared to others, which can impact an individual's self-esteem and overall psychological well-being.

Defence Mechanism

Psychological strategies brought into play by individuals, unconsciously, to protect themselves from anxiety or to provide a refuge from a situation with which they cannot currently cope.

Regression

A defense mechanism leading an individual to revert to an earlier stage of development in response to stress or conflict.

Immaturity

A lack of development, whether in biological, emotional, or psychological realms, often resulting in childlike behavior in adults.