Which of the Following Statements About Asset Impairment Is False

question 114

Multiple Choice

Which of the following statements about asset impairment is false?

• A)Asset impairment loss is the difference between an asset's net book value and its estimated future cash flows.
• B)If an asset is impaired, a loss would be recognized in the period it can be estimated.
• C)Impairment will lead to writing down the asset's net book value.
• D)Asset impairment occurs when the estimated future cash flows are less than the asset's net book value.

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Definitions:

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