In a Replacement Decision, If an Old Asset Sells Below

question 89

Multiple Choice

In a replacement decision, if an old asset sells below its book value

• A) a gain has incurred.
• B) a loss has incurred.
• C) there is no gain or loss since it is replaced.
• D) the net present value is negative.

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Definitions:

James-Lange Theory

A hypothesis suggesting that emotions are the outcome of physical responses to occurrences.

Two-Factor Theory

A psychological theory that proposes that emotions are based on physiological arousal and cognitive labels.

Cannon-Bard Theory

A theory of emotion that argues that physiological arousal and emotional experience occur simultaneously, but independently.

Guilty Knowledge Test

A psychological assessment that measures physiological responses to recognize familiarity with an event or object.