The FASB Established Principles for Evaluating Asset Impairment Because It

question 77

Multiple Choice

The FASB established principles for evaluating asset impairment because it hoped financial reporting would

• A) be enhanced through increasing the usefulness of a company's financial statements.
• B) present information that is expected to be more relevant.
• C) improve comparability across companies.
• D) All of these choices are reasons that FASB established principles for evaluating asset impairment.

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Definitions:

Profit

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Rate of Markdown

The percentage decrease from the original price to the sale price.

Operating Expenses

Costs associated with the day-to-day operations of a business or organization.

Wholesale Price

The cost of goods sold in large quantities, usually to retailers rather than directly to consumers.