Which of the Statements Below Is FALSE

question 27

Multiple Choice

Which of the statements below is FALSE?

• A)The current book value of an asset serves as the basis for determining the gain or loss at disposal.
• B)Book value is the original cost of the asset plus the accumulated depreciation.
• C)A gain on disposal is recognized when the selling price of the asset is greater than the book value.
• D)A loss on disposal is recognized when the selling price of the asset is less than the book value.

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Definitions:

Note Receivable

A promissory note held by the creditor, evidencing a debtor's obligation to pay back a loan or other credit extended.

Sells

The act of giving up ownership of an asset in exchange for money or equivalent.

Car

A car is a wheeled motor vehicle used for transportation, typically designed to run primarily on roads and to seat a small number of people.

Legal Services

Legal services encompass a broad range of activities involving advice, representation, or both in legal matters by a qualified professional.