If a company sells a fixed asset where the book value is less than the cash received,a gain must be recognized.

Question

Quizplus · Accepted Answer

This is correct according to the accounting principle of recognizing gains or losses on the sale of fixed assets. When the cash received is greater than the book value of the asset being sold, the difference is recognized as a gain on the company's income statement. This gain is equal to the excess amount received over the book value of the asset sold.

If a Company Sells a Fixed Asset Where the Book