Regarding a Firm That Abandons an Asset

question 162

Multiple Choice

Regarding a firm that abandons an asset,

• A)there is usually no market for the asset.
• B)the book value of an abandoned asset is eliminated from the balance sheet.
• C)the firm recognizes a loss in an amount equal to the book value of the abandoned asset in the period that the asset is abandoned.
• D)all of the above
• E)none of the above

---

Definitions:

Environmental Problems

Issues affecting the natural environment, including pollution, climate change, deforestation, and loss of biodiversity.

Social Entrepreneur

An individual who establishes an enterprise with the aim to solve social problems or improve community well-being through innovative solutions.

Solar Energy

A renewable energy source derived from the sun's rays, used to generate electricity or heat.

Venture Philanthropy Funding

A type of funding that combines venture capital principles with philanthropy to invest in social ventures that aim to generate social impact alongside financial returns.