When an Entity Sells a Non-Current Asset at a Profit

question 11

Multiple Choice

When an entity sells a non-current asset at a profit to another entity within the same group the following adjustment is necessary on consolidation:

• A)DR Asset CR Cash
• B)DR Cash CR Asset
• C)DR Gain on sale CR Asset
• D)DR Asset CR Gain on sale.

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Definitions:

Phantom Tickets

Non-existent tickets for events, often sold fraudulently, that do not grant entry to the purported event.

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting the value they attribute to it.

Basketball Sneakers

Footwear specifically designed to provide support, grip, and comfort for basketball players, often characterized by high-tops that provide ankle stability.

Consumer Surplus

The divergence between what consumers are willing and have the financial capability to pay for a good or service, and what they really pay.