When a Company Sells Machinery at a Price Equal to Its

question 32

Multiple Choice

When a company sells machinery at a price equal to its book value,this transaction will be recorded with an entry that would include which of the following?

• A)DR Cash and accumulated depreciation\(\quad\)CR Machinery
• B)DR Machinery\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\) CR Cash and accumulated depreciation
• C)DR Cash and machinery\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)\(\quad\)CR Accumulated depreciation
• D)DR Cash and depreciation expense\(\quad\)\(\quad\) CR Accumulated depreciation

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Definitions:

Disbursement Float

The time lag between a payment being made by a company and the actual withdrawal of funds from the company's account.