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.

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Definitions:

Efficient

The optimal use of resources to achieve the desired output with minimal waste, or achieving a goal in the most cost-effective way.

MSB = MSC

A condition where the Marginal Social Benefit of consuming a good equals the Marginal Social Cost of producing it, representing an optimal allocation of resources.

Public Park

A plot of land, usually owned by a government, open to the public for recreation and relaxation, without an entrance fee.

Positive Externality

A benefit received by third parties not directly involved in an economic transaction, like the environmental benefits from a public park.