If an Asset Is Sold

question 110

Multiple Choice

If an asset is sold:

• A) depreciation must be recorded to the date of sale.
• B) the cost of the asset is compared to the selling price to determine any gain or loss.
• C) the journal entry to record the sale will include a credit to cash.
• D) for a gain, total assets remain the same and total equity increases.

---

Definitions:

Business Ethics

The study of appropriate business policies and practices regarding potentially controversial subjects like corporate governance, insider trading, bribery, discrimination, and corporate social responsibility.

Unethical Situations

Scenarios or conditions where actions or decisions violate moral principles or standards of conduct, often leading to harm or unfairness.

Stakeholder Expectations

The beliefs or standards that stakeholders hold about a business's performance or behavior, which can significantly influence business decisions.

Internal Pressures

Forces within an organization or individual that influence or compel certain behaviors or decisions.