Asked by Carmen Mclaurin on May 31, 2024
Verified
When a property, plant, and equipment asset is sold for cash, any gain or loss on the asset sold should be recorded.
Gain Or Loss
The financial result that occurs when the selling price of an asset differs from its purchase price, either positive (gain) or negative (loss).
- Gain insight into the accounting treatment associated with the disposal, sale, exchange, and discarding of fixed assets.
- Ascertain the impact assorted transactions have on the notation of gains or losses concerning assets.
Verified Answer
ME
manolo espanaJun 03, 2024
Final Answer :
True
Explanation :
When a property, plant, and equipment asset is sold for cash, any gain or loss on the asset sold should be recorded in the income statement. This is done to accurately reflect the financial performance of the company.
Learning Objectives
- Gain insight into the accounting treatment associated with the disposal, sale, exchange, and discarding of fixed assets.
- Ascertain the impact assorted transactions have on the notation of gains or losses concerning assets.