Accounting for IGCSE & O level - Accounting Procedures (Section 10 - No. 41)
Which of the following statements is true regarding a 'loss' on the disposal of a non-current asset?
It is recognized when the selling price is higher than the carrying amount.
It decreases the carrying amount of the asset.
It decreases profit for the period.
It has no impact on the financial statements.
Explanation
A loss on disposal decreases profit.
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