When the Balance of an Asset Account, Like Checking, Increases

question 1

Multiple Choice

When the balance of an asset account, like Checking, increases, it means that the account has been:

• A)Debited
• B)Credited
• C)Deposited
• D)None of these

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Definitions:

Indefinite Life

Refers to assets that do not have a foreseeable end to their useful life, often applicable to intangible assets like trademarks.

Intangible Asset

An asset that lacks physical substance and is not financial in nature, such as patents, trademarks, and copyrights.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, representing non-physical assets like brand reputation and customer loyalty.

Book Value Decrease

A reduction in the book value of an asset, often due to depreciation, impairment, or disposal.