an impairment of an intangible asset decreases the asset, stockholders equity, and net income. true or false
an impairment of an intangible asset decreases the asset, stockholders equity, and net income. true or false
Answer
Brief Explanations:
When an intangible asset is impaired, a loss is recognized. This loss reduces net income. Since net - income affects retained earnings which is part of stockholders' equity, stockholders' equity also decreases. And the carrying value of the intangible asset is written down, reducing the asset amount.
Answer:
True