An Impairment of an Intangible Asset Decreases the Asset, Stockholders

question 156

True/False

An impairment of an intangible asset decreases the asset, stockholders' equity, and net income.

---

Definitions:

Liability Accounts

Accounts on a balance sheet that represent obligations or debts of a company that are expected to be paid in the future.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use, reflecting its decline in value over time.

Permanent Account

Financial accounts that are not closed at the end of an accounting period and whose balances are carried forward to the next period.

Post-closing Trial Balance

A financial statement prepared after closing entries are made, listing all the account balances to check the equality of debits and credits.