Accounting for IGCSE & O level - Accounting Procedures (Section 25 - No. 36)
What is the impact on the income statement if an asset is sold for more than its carrying amount?
Increase in net profit.
Decrease in net profit.
No effect on net profit.
Impact on revenue
Explanation
If an asset is sold for more than its book value, this creates a gain, which increases net profit.
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