An impairment loss has the effect of:
A) Reducing total assets.
B) Increasing liabilities.
C) Reducing total revenues.
D) None of these answer choices are correct.

Name: An impairment loss has the effect of: A) Reducing total assets. B) Increasing liabilities. C) Reducing total revenues. D) None of these answer choices are correct.
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Question

Quizplus · Accepted Answer

Impairment loss reduces the carrying amount of the asset, which in turn reduces the total assets on the balance sheet.

An Impairment Loss Has the Effect Of