When selling a piece of equipment for cash, a loss will result when the proceeds of the sale are less than the book value of the asset.

Name: When selling a piece of equipment for cash, a loss will result when the proceeds of the sale are less than the book value of the asset.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is true. The book value of an asset represents its value on the company's books, while the proceeds of the sale are the actual cash received. If the sale price is less than the book value, a loss will result.

When Selling a Piece of Equipment for Cash, a Loss