What Term Is Used to Describe the Situation Where There

question 139

Multiple Choice

What term is used to describe the situation where there is a permanent decline in the value of an intangible asset?

• A) Amortization
• B) Impairment
• C) Depletion
• D) Depreciation

---

Definitions:

Balance Sheet Accounts

Accounts that make up the financial statement showing a company's assets, liabilities, and equity at a specific point in time.

Statement of Stockholders' Equity

A financial document that shows changes in the value of a company's equity over a period, including shares issued, dividends, and earnings.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits.

Balance Sheet

A report detailing a business's assets, debts, and owners' equity at a particular moment, offering an overview of its financial health.