A Loss on Impairment of an Intangible Asset Is the Difference

question 48

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 recoverable amount.
• C) recoverable amount and the expected future net cash flows.
• D) book value and its fair value.

---

Definitions:

Cost Principle

An accounting principle that states assets should be recorded at their cost at the time of purchase, not their current value.