If a Fixed Asset Is Sold and the Book Value

question 88

Multiple Choice

If a fixed asset is sold and the book value of the asset is less than its selling price,the company must:

• A)recognize a loss on the income statement under other expenses.
• B)recognize a loss on the income statement under operating expenses.
• C)recognize a gain on the income statement under other revenues.
• D)recognize a gain on the income statement under revenues.

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Definitions:

Depository Institutions Deregulation

The legislative measures taken to reduce regulation over banks and other depository institutions to enhance their ability to compete and innovate.

Monetary Control Act

A law intended to regulate banking and manage the money supply, possibly referring to specific legislation like the Monetary Control Act of 1980 in the United States, which influenced the Federal Reserve's control over monetary policy.

Glass-Steagall Act

A U.S. law enacted in 1933, which separated commercial banking from investment banking, repealed in 1999.

1999 Repeal

Refers to the revocation of a law or act; often mentioned in economic contexts, such as the repeal of financial regulations or acts in 1999.