Principles of Accounting, Part 4, Question 45
The question is "An asset that cost $40,000, has accumulated depreciation of $30,000 and is sold for $12,000. What is the entry for the cash account? (dr or cr , Amount)"
The answer given is "DR, $12,000." I'm puzzled as to why this is a debit and not a credit. If you sell something for $12,000, doesn't that increase, not decrease, the cash account?
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Excelsior, BS Finance, pursuing degree
Studying:
Completed:
CLEP: Hum. (67), Hist. of U.S. I (74), Hist. of U.S. II (71), Intro. Psych. (69), Intro. Soc. (72), Soc. Sci. and Hist. (74), Western Civ I (72), Western Civ II (70), Am. Lit. (60), Intro. to Educ. Psych. (62), P. of Management (74), P. of Market. (74), Intro. Bus. Law (67), P. of Accounting (60), AmGov (68)
DSST: Ethics in Am. (76), P. of Super.(67), HRM (65), Intro to Bus. (70), MIS (65), P. of Fin (62), M&B (65), P. of Stat. (68)
ECE: OB (B)
TECEP:: IntFin, SecAna
Total Credits: 114
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