Which Is an Exception to the Rule: "Test for Impairment

question 84

Multiple Choice

Which is an exception to the rule: "test for impairment only if there are indicators for impairment"?

• A)Intangible assets with indefinite lives.
• B)Intangible assets with definite lives.
• C)Internally generated goodwill.
• D)Tangible assets with definite lives.

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Cash Break-Even

The point at which a business's cash inflows equal its cash outflows, excluding financing or investment income.

Straight-Line Depreciation

An operation for dividing up the expense of a tangible asset throughout its active life in uniform annual totals.

Required Rate of Return

This refers to the minimum expected yield by investors to compensate for the risk of the investment.