A Loss on Disposal of a Plant Asset Is Reported

question 120

Multiple Choice

A loss on disposal of a plant asset is reported in the financial statements

• A) in the Other Revenues and Gains section of the income statement.
• B) in the Other Expenses and Losses section of the income statement.
• C) as a direct increase to the capital account on the balance sheet.
• D) as a direct decrease to the capital account on the balance sheet.

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Definitions:

Financial Data

Information about financial transactions, including revenues, expenses, assets, and liabilities, used to analyze the financial health of a business.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets, excluding inventory.

Financial Data

Information related to the financial status of an individual or organization, including income, expenses, assets, and liabilities.

Acid-Test Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.