Losses on the discarding of fixed assets are reported in the income statement.

Discarding

The act of getting rid of something that is no longer useful or desired, within a context like inventory management or manufacturing.

Fixed Assets

Permanent tangible properties engaged in business operations, which are unlikely to be used up or exchanged for cash in the span of a year.

Acquire knowledge on the accounting procedures for the disposal, sale, exchange, and deletion of fixed assets.
Identify the effects of differing transactions on the accounting for asset gains or losses.

Verified Answer

Final Answer :

True

Explanation :

Losses on the discarding of fixed assets are considered as an expense and are reported in the income statement.

Learning Objectives

Acquire knowledge on the accounting procedures for the disposal, sale, exchange, and deletion of fixed assets.
Identify the effects of differing transactions on the accounting for asset gains or losses.