Which of the Following Is Correct Regarding Gain or Loss

Multiple Choice

Which of the following is correct regarding gain or loss on disposal of a long-lived asset?

A) Failure to report a gain on the sale of an asset results in an overstatement of net income.
B) Failure to report a gain on the sale of an asset results in an understatement of stockholders' equity.
C) Failure to report a loss on the sale of an asset results in an understatement of net income.
D) Failure to report a loss on the sale of an asset results in an understatement of earnings per share.