A Reduction in the Value of an Asset Below Its

question 180

Multiple Choice

A reduction in the value of an asset below its carrying value on the balance sheet is called a

• A) discontinued operation.
• B) write-down.
• C) restructuring.
• D) gain.

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Definitions:

Negotiable Instrument

is a document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Negotiable Instruments Law

The body of law governing financial instruments that can be transferred from one party to another, such as checks or promissory notes.

Fraudulent Representations

False statements knowingly made to deceive others, often to induce them to part with money or property.

Negotiable Note

A written promise to pay a specified sum of money, which can be transferred to others.