Which of the Following Is an Impairment Indicator

question 41

Multiple Choice

Which of the following is an impairment indicator?

• A)a significant decrease in the purchase price of an asset or asset group scheduled to be acquired in the current period
• B)a significant adverse change in legal factors that could affect the value of the asset or asset group
• C)a significant increase in the purchase price of an asset or asset group scheduled to be acquired in the current period
• D)a significant increase in the market price of an asset or asset group

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Definitions:

Technological Change

The process of invention, innovation, and diffusion of technology or processes which significantly alters the way goods or services are produced.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs produced to inputs used in the production process over a defined period of time.

American Economy

The economic system of the United States, characterized by a mix of private and public enterprises and a relatively high level of technological innovation and productivity.

Savings Rate

The Savings Rate is a measure indicating the proportion of income that households save rather than spend on consumption.