Which of the Following Happens When You Sell an Asset

question 14

Multiple Choice

Which of the following happens when you sell an asset for less than you paid for it?

• A) Capital gain.
• B) Capital loss.
• C) Dividends.
• D) You break even on the sale.

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Definitions:

Accounting Records

Documentation and books that keep track of the financial transactions, operations, and condition of a business.

Revenues Recognized

Refers to the income that a company has earned and reported on its financial statements for a specific period, in accordance with accounting principles.

FASB Conceptual Framework

The Financial Accounting Standards Board (FASB) Conceptual Framework is a coherent system of interrelated objectives and fundamentals that is intended to lead to consistent standards.

Qualitative Characteristics

The attributes that make the information provided in financial statements useful to users, including relevance, understandability, reliability, and comparability.