Asked by Caylee Pritchett on Jun 04, 2024
Verified
A loss on the sale of a plant asset is listed as:
A) a liability on the balance sheet.
B) an asset on the balance sheet.
C) other expense on the income statement.
D) other income on the income statement.
Loss
The amount of money a business loses when its expenses exceed its revenues.
Sale
The exchange of goods or services for money, representing a fundamental activity of business operations.
Plant Asset
Long-term tangible assets used in the operations of a business that are not intended for resale, such as machinery, buildings, and vehicles.
- Gain an understanding of the procedure for entering the gain or loss from disposing of an asset in financial reports.
Verified Answer
JP
Jayla PeralesJun 08, 2024
Final Answer :
C
Explanation :
A loss on the sale of a plant asset is recorded as an "other expense" on the income statement because it represents an outflow or the consumption of economic benefits during the period.
Learning Objectives
- Gain an understanding of the procedure for entering the gain or loss from disposing of an asset in financial reports.