If an Intangible Asset with an Indefinite Life Becomes Impaired

question 103

Multiple Choice

If an intangible asset with an indefinite life becomes impaired, the asset must be

• A) written down to cost.
• B) written down to fair value.
• C) sold at its net realizable value.
• D) No adjustment is required and a loss will be recorded when the intangible asset is sold.

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Definitions:

Stimulus Generalization

The psychological phenomenon where a response conditioned to one stimulus is elicited by similar, but not identical, stimuli.

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, triggers a conditioned response.

Electric Can Opener

A kitchen appliance designed to remove the lid from a metal can by using an electric motor to power a cutting mechanism.

Cat Food

Nutritional feed specifically formulated to meet the dietary requirements of cats.