Accounting for IGCSE & O level - Accounting Procedures (Section 27 - No. 6)
In the event of a loss on disposal, what is the final effect on the statement of financial position?
Total assets increase.
Total assets decrease.
Total liabilities increase.
Retained earnings will increase.
Explanation
A loss on disposal means that the asset is removed from the financial statements, and the value of the asset will decrease.
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