When a Company Sells Equipment for Cash on a Date

question 70

Multiple Choice

When a company sells equipment for cash on a date other than the last day of the accounting period,it must record:

• A)depreciation expense for the entire accounting period during which the equipment is sold.
• B)the disposal by reducing equipment and increasing revenue; a gain or loss is reported if the decrease and increase are not equal.
• C)the disposal by decreasing both equipment and accumulated depreciation while increasing cash; a gain is reported if total assets increase.
• D)accumulated depreciation for the entire current accounting period.

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Definitions:

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A curve showing the different combinations of two goods or services that can be produced in a full-employment, full-production economy where the available supplies of resources and technology are fixed.