In Contrast to Long-Lived Tangible Assets,U

question 84

Multiple Choice

In contrast to long-lived tangible assets,U.S.GAAP does not require ________ for indefinite-life intangible assets.

• A)a fair value test
• B)a recoverability test
• C)a historical cost test
• D)a present value test
• E)a future value test

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Definitions:

Financial Statements

Summaries that detail a company's financial operations and status, incorporating the balance sheet, income statement, and statement of cash flows.

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts.

Average Total Assets

The average value of all assets owned by a company over a period, typically calculated by combining the beginning and ending values for a period and dividing by two.

Asset Turnover

A ratio that determines the competence of an organization in using its assets to generate income from sales.