Question Completion Status:

QUESTION $10$

On a multi$-$step income statement, depreciation expense is reported as an:

operating expense

non$-$operating expense

QUESTION $11$

Book value is the same as current market value

True

False

QUESTION $12$

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 non$-$operating income on the income statement

QUESTION $13$

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