When a Plant Asset Is Sold,if the Book Value Is

question 115

True/False

When a plant asset is sold,if the book value is lower than the sales price,there will be a loss on sale.

---

Definitions:

Accounts Receivable Period

The amount of time it takes for a company to collect payment from its customers after a sale has been made, indicative of the company's efficiency in collecting its receivables.

Inventory Item

refers to any product or goods that a company holds in stock with the intention of selling it to customers.

Inventory Period

The average time it takes for a company to turn its inventory into sales, indicating how quickly products are sold.

Obsolete Inventory

Items in stock that are out of date or no longer in demand, often leading to reduced value or write-offs.