Gains on the Sale of Fixed Assets for Cash

question 30

Multiple Choice

Gains on the sale of fixed assets for cash:

• A)Are the excess of the book value over the cash received.
• B)Are recorded as a debit.
• C)Are reported on a net-of-tax basis if material.
• D)Are the excess of the cash received over the book value.

Identify fiscal policy measures for addressing budget deficits and national debt.

Evaluate the effectiveness and timing of fiscal stimulus packages.

Understand the significance of balancing the budget over the business cycle.

Assess the implications of the crowding-out effect on economic activity.

---

Definitions:

Tenants

Individuals or entities that occupy property or land rented from a landlord and are subject to the terms of a lease.

Tenancy in Common

A form of joint ownership of property in which each owner holds an undivided interest without right of survivorship.

Corporation

A legal entity separate from its owners, providing limited liability protection to its shareholders, and possessing the ability to own property, enter contracts, and sue or be sued.

Fixture

An item that was once movable personal property but has been attached to, and becomes part of, the real estate.