Accounting for IGCSE & O level - Accounting Procedures (Section 14 - No. 17)
What is the effect on the financial statements if an asset is sold for an amount that is the same as its book value?
There is no gain or loss on the income statement.
Cash will increase on the balance sheet.
Retained earnings will change.
All of the above
Explanation
If the selling price equals the book value, there is no gain or loss reported on the income statement, but the balance sheet will change.
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