Stricker Company sold equipment for $4,000. This resulted in a $1,500 loss. What is the impact of this sale on the balance sheet?
A) Reduces total assets
B) Increases total assets
C) Has no effect on total assets
D) Increases total assets and decreases total equity

Question

Quizplus · Accepted Answer

Selling equipment for a loss results in a decrease in total assets, as the equipment is no longer owned by the company and therefore cannot be included in the assets portion of the balance sheet.

Stricker Company Sold Equipment for $4,000