A loss on the sale of a long-term asset is recorded when cash proceeds are ________.
A)less than the book value of the assets sold
B)less than the historical cost of the asset sold
C)less than the accumulated depreciation
D)greater than the book value of the asset sold

Question

Quizplus · Accepted Answer

A loss on the sale of a long-term asset is recorded when cash proceeds are less than the book value of the asset sold. The book value is the historical cost of the asset less any accumulated depreciation, and if the cash proceeds are less than this amount, a loss is recognized on the sale. If the cash proceeds are greater than the book value, a gain is recognized on the sale.

A Loss on the Sale of a Long-Term Asset Is