Question

If a firm takes a charge for an asset impairment during a year, how will the...

If a firm takes a charge for an asset impairment during a year, how will the following financial statement items and ratios be affected?

                                  When they have the impairment            In the following year

Net Income                 Increase   Decrease                              Increase Decrease

Depreciation                Increase   Decrease                             Increase Decrease

Income Tax Expense   Increase    Decrease       Increase Decrease

Fixed Assets              Increase    Decrease                             Increase Decrease

Long Term Debt          Increase    Decrease      Increase Decrease

Business   Accounting   
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Answer #1

There will be no change in long term debt

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