Which of the Following Items Is Included in the Journal

question 75

Multiple Choice

Which of the following items is included in the journal entry if a company sells equipment at a price less than its book value?

• A) A debit to Equipment for its book value
• B) A credit to Gain on sale of equipment
• C) A debit to Loss on sale of equipment
• D) A credit to Accumulated depreciation

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Definitions:

Federal Law

Legislation enacted by the national government of a country and applicable throughout its jurisdiction.

Insider Trading

The illegal buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock.

Solar Power

The conversion of energy from sunlight into electricity, either directly using photovoltaic cells or indirectly through concentrated solar power systems.

Violation

The act of breaching, disobeying, or infringing upon a law, rule, or agreement.