Which of the following is a term used to describe management's recognition that a significant portion of fixed assets is no longer as productive as had originally been expected?
A) Asset depreciation.
B) Asset amortization.
C) Asset impairment.
D) Asset disposal.

Question

Quizplus · Accepted Answer

Asset impairment is the term used to describe management's recognition that a significant portion of fixed assets is no longer as productive as had originally been expected. This can lead to a write-down of the asset to reflect its lower value. Asset depreciation refers to the systematic allocation of the cost of an asset over its useful life, while asset amortization is the same concept applied to intangible assets. Asset disposal refers to the process of getting rid of an asset, whether through selling, scrapping, or otherwise.

Which of the Following Is a Term Used to Describe