If a Plant Asset Is Sold at a Gain the Gain

question 46

True/False

If a plant asset is sold at a gain the gain on disposal should reduce the cost of goods sold section of the income statement.

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Definitions:

Operating Revenue

Revenue earned from a company’s primary business activities, excluding items like investment revenue.

Car Dealership

A business that specializes in the sale of new or used cars.

Office Supplies

Office supplies refer to various items and equipment used in offices or for professional purposes, such as stationery, computers, and furniture.

Expenses

Outflows or other using-up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities.