Which of the Following Statements Regarding Impairment Testing of Long-Lived

question 60

Multiple Choice

Which of the following statements regarding impairment testing of long-lived assets is false?

• A)If the carrying value of the asset is greater than its recoverable value,an impairment loss must be recognized.
• B)The asset recoverability test compares the carrying value of the asset with its fair value.
• C)The carrying value of the asset after adjustment for impairment loss is its fair value.
• D)If impairment indicators are present,the company must conduct an impairment test.

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Definitions:

Causation

The demonstration of how one event or action is the result of or factors into the occurrence of another event or action.

"But For" Rule

A principle used in the causation analysis of legal cases, indicating that an event would not have occurred 'but for' the actions of the defendant.

Duty Of Care

Duty of care is a legal obligation imposed on individuals or organizations to take reasonable care to avoid causing harm to others in specific circumstances.

Invitee

A person who is invited onto property or premises for the benefit of the property owner or occupier, thus granted higher safety and care standards.