Which of the Following Is True Regarding Asset Abandonment

question 160

Multiple Choice

Which of the following is true regarding asset abandonment?

• A)Firms will sometimes abandon assets if there is no market for the asset.
• B)The firm eliminates the carrying value of the asset and recognizes a loss in an amount equal to the carrying value.
• C)Firms will sometimes abandon assets if an automobile is severely damaged in an accident.
• D)Firms will sometimes abandon assets if a machine requires an overhaul that is not cost effective.
• E)all of the above

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Definitions:

Competence

The ability to do something successfully or efficiently, often referring to a specific skill set or knowledge area.

Intrinsic Motivation

the drive to engage in an activity for its own sake, deriving pleasure and satisfaction from the activity itself rather than from any external rewards.

Extrinsic Motivation

Inspiration fueled by outside incentives like financial gain, celebrity status, academic marks, and commendations.

Extrinsic Motivation

A form of motivation that is driven by external rewards such as money, fame, grades, or praise.