Equipment Is Sold for Cash in an Amount Equal to the Cost

question 138

Multiple Choice

Equipment is sold for cash in an amount equal to the cost of the equipment recorded on the books.How does this sale affect the accounting equation?

• A) One asset increases; one asset decreases.
• B) Assets increase; liabilities increase.
• C) Assets increase; liabilities decrease.
• D) Assets increase; owner's equity increases.

Understand the role of self-talk and illogical thinking in cognitive therapy.

Differentiate between operant and classical conditioning within the context of behavioral therapies.

Appreciate the importance of modeling in the acquisition of behavior according to the behavioral model.

Recognize the application of exposure therapy in treating phobias and related disorders.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to the scale of their operations, leading to a reduction in average costs per unit as output increases.

Decreasing Marginal Product

A principle where each additional unit of input results in a smaller increase in output, after a certain point, indicating declining efficiency.

Total Cost Curve

A graphical representation that illustrates how the total cost of producing a good changes in relation to the quantity produced, considering both fixed and variable costs.

Diseconomies of Scale

Diseconomies of scale occur when a firm or business grows so large that the costs per unit increase, leading to inefficiency and higher production costs.