Which of the following statements is incorrect with respect to the sale of a depreciable asset?
A)A gain occurs when the selling price exceeds book value.
B)A sale for a gain results in an increase in total assets.
C)A sale for a loss results in an increase in total assets.
D)A loss occurs when the selling price is less than book value.

Question

Quizplus · Accepted Answer

Total assets decrease when an asset is sold at a loss because the proceeds (selling price) are less than book value.

Which of the Following Statements Is Incorrect with Respect to the Sale