Which of the Following Journal Entries Is Correct When a Depreciable

question 102

Multiple Choice

Which of the following journal entries is correct when a depreciable asset (building) is sold for cash subsequent to acquisition?

• A) Cash
• Accumulated depreciation
• \( \quad \)Loss on sale
• \( \quad \)Building
• B) Cash
• Building
• \( \quad \)Gain on sale
• \( \quad \)Accumulated depreciation
• C) Cash
• Accumulated depreciation
• Loss on sale
• \( \quad \)Building
• D) Cash
• Gain on sale
• \( \quad \)Building

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Definitions:

Large-Scale Production

Refers to the manufacture of large quantities of products in efficient and cost-effective methods, often using automation and sophisticated technology.

Environmental Destruction

The degradation of the environment through depletion of resources such as air, water, and soil; the destruction of ecosystems; habitat destruction; the extinction of wildlife; and pollution.

Impoverishment

The condition of being poor or lacking the necessary means of subsistence and financial resources.

Adaptation

A series of beneficial adjustments to a particular environment.