Which of the following statements regarding impairment is correct?
A) Asset impairment losses are a regular operating expense of most businesses.
B) When a company records an asset impairment loss, it will increase net income for that period.
C) The accounting for impairment losses is an application of the cost principle.
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, reflecting a reduction in the asset's value.

Which of the Following Statements Regarding Impairment Is Correct