A loss on disposal of an asset is reported:
A)in the Other Revenues section of the income statement.
B)in the Other 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 considered an expense and is reported in the Other Expenses section of the income statement. It represents the difference between the original cost of the asset and the proceeds from its sale, and is not directly recorded as an increase or decrease to the asset account on the balance sheet.

A Loss on Disposal of an Asset Is Reported