A loss on disposal of an asset is reported:
A) in the Operating Revenues section of the income statement.
B) in the Operating Expenses section of the income statement.
C) as a direct increase to the asset account on the balance sheet.
D) as a direct decrease to the asset account on the balance sheet.

Question

Quizplus · Accepted Answer

A loss on disposal of an asset is reported in the Operating Expenses section of the income statement because it represents a cost incurred by the company during its operations.

A Loss on Disposal of an Asset Is Reported