The Write-Down of an Asset Will Affect

question 157

Multiple Choice

The write-down of an asset will affect

• A) neither total assets nor net income.
• B) net income, but not total assets.
• C) both total assets and net income.
• D) total assets, but not net income.

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Definitions:

Economic Theory

A set of principles and models that seeks to explain how economies work and the behaviors of economic actors.

Real-world Events

Occurrences or developments that happen in the physical world, beyond theoretical or hypothetical situations.

Assumptions

Premises or conditions accepted as true without proof, used as bases for reasoning or an argument.

Secondary Effects

The indirect impacts that follow the primary effects of a decision or action in economics, often unforeseen or unintended.