A loss on the sale of an asset would occur when:

Question

Quizplus · Accepted Answer

A loss on the sale of an asset occurs when the cash received is less than the book value of the asset. This means that the asset was sold for less than its recorded value in the company's books, resulting in a loss. Option B is incorrect because it describes a situation where the asset was sold for its book value, resulting in neither a gain nor a loss. Option C is incorrect because it describes a situation where the asset was sold for more than its book value, resulting in a gain. Option D is incorrect because one of the answers is correct, as explained above.

A Loss on the Sale of an Asset Would Occur