Accounting for IGCSE & O level - Accounting Procedures (Section 8 - No. 18)
If an asset is disposed of, what impact does this have?
There is no impact.
It decreases the assets on the balance sheet and potentially affects profit.
It increases the assets on the balance sheet.
It creates an increase in the liabilities on the balance sheet.
Explanation
Disposal of an asset reduces the asset on the balance sheet and can result in a gain or loss on disposal impacting profit.
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