A Gain Is Recorded on the Sale of Fixed Assets

question 53

Multiple Choice

A gain is recorded on the sale of fixed assets when:

• A) the asset is sold for a price less than its book value.
• B) the asset is sold for a price more than its book value.
• C) accumulated depreciation on asset is less than its selling price.
• D) accumulated depreciation on asset is more than its selling price.

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Definitions:

Maximum Profit

The highest possible financial gain achievable by a firm from its business activities, typically reached at optimal production levels.

Cost Conditions

The various factors affecting the total expenses incurred by businesses in the production or delivery of goods and services.

Cost Conditions

The various factors and elements that influence the total cost of production, including material costs, labor, and overhead.

Demand Conditions

The various factors affecting consumer desire for goods or services, including price, income levels, and preferences.