When a Company Sells Equipment for Cash on a Date

question 134

Multiple Choice

When a company sells equipment for cash on a date other than the last day of the accounting period,it must:

• A)record Depreciation Expense for the entire accounting period during which the equipment is sold.
• B)record the disposal by reducing the Equipment account and increasing a revenue account;a gain or loss is reported if the decrease and increase are not equal.
• C)first record Depreciation Expense for the period up to the date of sale,and then record the disposal by increasing Cash and decreasing both Equipment and Accumulated Depreciation;a gain or loss is reported if the proceeds from the sale do not equal the asset's book value.
• D)record Accumulated Depreciation for the entire current accounting period.

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Definitions:

Biological Relatives

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Adoptive Relatives

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Medication For Schizophrenia

Pharmaceutically prepared substances used to manage and treat the symptoms of schizophrenia, including antipsychotics.