Beta Co.recorded a loss due to impairment of some of its assets.As a result of this journal entry:
A)liabilities are increased.
B)expenses are increased.
C)stockholders' equity is increased.
D)assets are decreased.

Question

Quizplus · Accepted Answer

A loss due to impairment is recorded as a debit to Impairment Loss and a credit to the asset.Thus,as a result of recording a loss,assets are decreased.Impairment Loss is not an expense account but it does decrease net income which decreases stockholders' equity.

Beta CoRecorded a Loss Due to Impairment of Some of Its