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.

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Definitions:

Involuntary Dissolution

The forced ending of a corporation or partnership by legal means, often as a result of legal or regulatory action.

Gridlock

A situation, often in an urban context, where congestion and overcrowding lead to complete immobilization of traffic. Alternatively, it refers to a deadlock situation where no progress can be made in negotiations or decision-making, often in political contexts.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them partial ownership.

Universal Requirements

Standard criteria or conditions that are globally applicable or necessary across different contexts or systems.