Which of the following statements regarding asset impairment is correct?
A)Asset impairment losses appear on a company's income statement every year.
B)When a company records an asset impairment loss,it will increase net income for that period.
C)Impairment occurs when an asset's book value is less than its current value.
D)Asset impairment losses are reported on the income statement as an operating expense.

Question

Quizplus · Accepted Answer

Asset impairment losses are reported on the income statement as an operating expense because they represent a reduction in the value of an asset, impacting the company's operating results.

Which of the Following Statements Regarding Asset Impairment Is Correct