A reduction in the value of an asset below its carrying value on the balance sheet is called a
A) discontinued operation.
B) write-down.
C) restructuring.
D) gain.

Question

Quizplus · Accepted Answer

A write-down is the accounting term used when the value of an asset decreases below its carrying value on the balance sheet. This adjustment is necessary to accurately reflect the true value of the asset and prevent overstating the company's financial position.

A Reduction in the Value of an Asset Below Its