The Correct Journal Entry to Record the Reversal of an Impairment

question 6

Multiple Choice

The correct journal entry to record the reversal of an impairment loss is:

• A)Debit Accumulated impairment losses Credit Impairment loss reversal (income)
• B)Debit Asset Credit Impairment loss (expense)
• C)Debit Impairment loss reversal (income)Credit Accumulated impairment losses
• D)Debit Asset Credit Impairment loss reversal (income)

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Definitions:

Habitual Decision

The process of making choices automatically based on past behaviors and routines without considerable thought.

Purchase Decision

The process that leads a consumer from identifying a need or desire, through information search and evaluation of alternatives, to the buying action.

Information Search

The process individuals engage in to gather relevant information from various sources in order to make informed decisions or solve problems.

Purchase Momentum

The psychological phenomenon where an initial purchase increases the likelihood of further purchases.