Which of the Following Is NOT Likely to Be an Indicator

question 33

Multiple Choice

Which of the following is NOT likely to be an indicator of possible asset impairment?

• A) evidence of obsolescence or physical damage
• B) a significant decrease in the asset's market value
• C) the book value of the entity's net assets is greater than the entity's market capitalization
• D) costs incurred for asset acquisition or operation are significantly lower than originally expected

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Definitions:

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Direct Labor Cost

The total cost of wages paid to employees who are directly involved in the manufacturing or production of goods or services.

Estimated

An approximation or a preliminary calculation of figures based on available data or trends.

Raw Materials Production Needs

The quantity of raw materials required to meet the production schedule, considering inventory levels and future production rates.