To Maximize Profit or Reduce Dollar Losses When You Sell

question 99

Multiple Choice

To maximize profit or reduce dollar losses when you sell your investments, it is important to do all of the following except

• A) Keep purchase records of actual dollar costs.
• B) Keep accurate records to help you spot opportunities for when to sell.
• C) Identify and document commissions or fees paid.
• D) Keep a list of sources of information (such as Internet addresses) for reference.
• E) Identify the actual dollar cost of the investments after you sell them.

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Definitions:

Accumulated Depreciation

The cumulative sum of depreciation expense allocated for a physical asset from the time it was first used.

Disposal

The elimination of an asset from the balance sheet, typically due to sale, loss, or obsolescence.

Machinery

Physical assets used in a business operation to manufacture or produce goods.

Gain on Disposal

Gain on disposal refers to the financial profit made from selling an asset for more than its carrying amount on the books.