Which of the Following Items Is Included in the Journal

question 12

Multiple Choice

Which of the following items is included in the journal entry if a company sells equipment at a price equal to its carrying amount?

• A)A debit to Loss on sale of equipment
• B)A credit to Accumulated depreciation
• C)A debit to Equipment for its carrying amount
• D)A credit to Equipment for its original cost

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Definitions:

Reserve Requirement Ratio

The fraction of deposits which a bank is mandated to hold in reserve, either in its own vaults or with the central bank, rather than lending to consumers.

Checkable Deposits

Bank accounts that allow the account holder to write checks or use debit cards to make payments directly from the account.

New Reserves

Resources or assets that have been newly discovered or identified, often referring to natural resources like oil, gas, or minerals that can be economically extracted.

Reserve Requirement Ratio

The fraction of deposits that banks must hold in reserve and not lend out, as mandated by the central bank.