The write-down of goodwill due to impairment will cause:
A)net income to increase.
B)intangible assets to decrease.
C)property and equipment to decrease.
D)long-term liabilities to increase.

Question

Quizplus · Accepted Answer

An impairment loss is recorded with a debit to Loss on Impairment (which increases expenses and,as such,decreases net income and stockholders' equity)and a credit to Goodwill (which decreases intangible assets).

The Write-Down of Goodwill Due to Impairment Will Cause