Question Completion Status:
QUESTION
On a multistep income statement, depreciation expense is reported as an:
operating expense
nonoperating expense
QUESTION
Book value is the same as current market value
True
False
QUESTION
How is a gain on the sale of equipment presented in the financial statements?
Reported as revenue in the income statement
Deducted from the equipment account in the balance sheet
Presented as an extraordinary item on the income statement
Reported as a nonoperating income on the income statement
QUESTION
How does a gain or loss on the sale of equipment affect the net income of a company?
A gain increases net income, and a loss decreases net income
A gain decreases net income, and a loss increases net income
Both a gain and a loss have no effect on net income
