Which of the Following Statements Is Incorrect with Respect to the Sale

question 62

Multiple Choice

Which of the following statements is incorrect with respect to the sale of a depreciable asset?

• A)A gain occurs when the selling price exceeds book value.
• B)A sale for a gain results in an increase in total assets.
• C)A sale for a loss results in an increase in total assets.
• D)A loss occurs when the selling price is less than book value.

---

Definitions:

Weber's Law

A principle relating to perception that states the smallest change in a stimulus that can be detected is a constant proportion of the stimulus level.

Illumination

The deliberate use of light to achieve a practical or aesthetic effect.

Brightness

The perception of how light or dark a color appears; a quality of visual experience that varies with lighting conditions.

Optic Nerve

The cranial nerve that transmits visual information from the retina to the brain, playing a crucial role in the sense of sight.