In Determining the Impairment of a Long-Term Asset,an Accountant Applies

question 44

Essay

In determining the impairment of a long-term asset,an accountant applies the _________________ test to compare the asset's net book value with estimated cash flows from the asset's future use.

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Definitions:

Confirmation Bias

The habit of looking for, understanding, preferring, and remembering information that validates one's existing views or theories.

Factor Analysis

A statistical procedure that identifies clusters of related items (called factors) on a test; used to identify different dimensions of performance that underlie a person’s total score.

Algorithms

Step-by-step procedures or formulas for solving problems, often employed in the fields of mathematics and computer science.

Availability Heuristic

A cognitive shortcut that depends on the first examples that spring to mind when one assesses a particular topic, concept, strategy, or choice.