Asked by Meagan Bowman on May 06, 2024
Verified
The Loss on Disposal account is classified as another revenue account.
Loss on Disposal
A financial loss that occurs when the selling price of an asset is less than its carrying amount.
Revenue Account
An account that shows the income generated by a business from its normal operational activities.
- Comprehend the process of documenting profit or loss from the disposal of an asset in financial records.
Verified Answer
LW
Leanne WilliamsMay 09, 2024
Final Answer :
False
Explanation :
The Loss on Disposal account is an expense account that records the loss when an asset is sold for less than its carrying amount.
Learning Objectives
- Comprehend the process of documenting profit or loss from the disposal of an asset in financial records.