When an Asset Is Traded for a Similar Asset, If

question 110

True/False

When an asset is traded for a similar asset, if the trade-in allowed is less than the book value of the asset, the loss is not recognized for financial accounting purposes.

---

Definitions:

Alkylbenzenesulfonate Detergent

A type of synthetic detergent made from alkylbenzene sulfonic acid, commonly used for its cleaning properties.

Common Soap

A detergent made from fats and an alkali, used for cleaning through its ability to remove dirt and grease.

Fatty Acids

Long chain carboxylic acids, often found in fats and oils, serving as important sources of energy for the body and as components of cell membranes.

Melting Point

The temperature at which a solid becomes a liquid at atmospheric pressure.