Which of the Following Is Correct When Land Costing $20,000

question 24

Multiple Choice

Which of the following is correct when land costing $20,000 is sold for $29,000? The land was a component of property and equipment on the balance sheet.

• A)Revenues are debited for $29,000.
• B)Cost of goods sold is credited for $20,000.
• C)Gain on sale of land is credited for $9,000.
• D)Operating income increases $29,000.

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Definitions:

Depth Of Processing

A theory referring to how deeply information is processed and thought about, which influences how well it is remembered.

Craik And Lockhart's

Refers to the Levels of Processing theory of memory, proposing that memory retention depends on the depth of processing an item.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response when the reinforcement is no longer offered.

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is necessary for the use and understanding of language.