Which Is Not a Source of Information That Would Be

question 24

Multiple Choice

Which is not a source of information that would be used as an indicator of impairment?

• A)Adverse changes in the technological competitive or legal environment of the entity.
• B)Market value of asset has increased more than would be expected from normal aging.
• C)Market value of asset has decreased more than would be expected from normal aging.
• D)The market value of the entity as a whole is less than the carrying value of its net assets.

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.

Confirmation Biases

The habit of seeking out, understanding, preferring, and remembering information in a manner that reinforces one's already held beliefs or theories.

Self-Serving Bias

A cognitive bias that leads individuals to attribute their successes to internal factors and their failures to external factors, enhancing their self-esteem.

Recognition Heuristic

A decision-making process where familiarity with a subject or thing makes it more likely to be chosen over unfamiliar options.