If the Market Value of the Reporting Unit Is Below

question 61

True/False

If the market value of the reporting unit is below book value and a significant amount of goodwill exists, the presumption is that there has been an impairment of goodwill.

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Definitions:

Multiplier

In economics, the factor by which gains in total output are greater than the change in spending that caused it, often used in the context of fiscal policy effects.

Equilibrium GDP

The level of GDP at which total supply and total demand in the economy are equal, resulting in no inherent tendency for the economy to change its level of output.

Full Employment GDP

The maximum output that an economy can produce without causing inflation, when all available resources are utilized efficiently.

Keynes

From the UK, this economist's theories ushered in a new era for macroeconomic practice and governmental economic policy-making.