Which of the Following Items Is Included in the Journal

question 66

Multiple Choice

Which of the following items is included in the journal entry if a company sells equipment at a price less than its carrying amount?

• A)a credit to Accumulated depreciation
• B)a credit to Gain on sale of equipment
• C)a debit to Loss on sale of equipment
• D)a debit to Equipment for its carrying amount

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Definitions:

Cost-reducing

Efforts or strategies implemented to lower production expenses, improve efficiency, and increase profitability.

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a person, community, or nation.

Productivity Decline

A decrease in the efficiency with which inputs are converted into outputs, often measured in terms of units produced per labor hour.

Productivity Factors

Refer to the various elements that can influence the efficiency and output of production in an economy, including technology, labor skills, capital goods, and innovation.