A Loss on Impairment of an Intangible Asset Is the Difference

question 15

Multiple Choice

A loss on impairment of an intangible asset is the difference between the asset's

• A) Carrying amount and the expected future net cash flows
• B) Carrying amount and its fair value
• C) Fair value and the expected future net cash flows
• D) Book value and its fair value

---

Definitions:

Pareto Optimal

A state of allocation of resources in which it is impossible to make any individual or preference criterion better off without making at least one individual or criterion worse off.

Marginal Rates

The additional cost or benefit gained from a small or marginal change in production, consumption, or investment.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of most living organisms.

Distribution

The process of making a product or service available to consumers through a supply chain and marketing channels.