Which of the Following Items Is Included in the Journal

question 35

Multiple Choice

Which of the following items is included in the journal entry if a company sells equipment at a price greater than its carrying amount?

• A)A debit to Loss on sale of equipment
• B)A credit to Accumulated depreciation
• C)A credit to Gain on sale of equipment
• D)A debit to Equipment for its carrying amount

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Definitions:

Opportunity Cost

Opportunity cost is the value of the next best alternative forgone as the result of making a decision.

Henry George

A 19th-century economist known for his belief that people should own the value they produce themselves, but that land and natural resources should belong to all (Georgism).

Allocative Efficiency

A state of resource allocation in which it is impossible to make any one individual better off without making at least one individual worse off.

Incentive Function

The role of rewards or penalties in motivating individuals or entities to behave in certain ways.