Under What Circumstance Should a Company Record an Asset Impairment

question 10

Multiple Choice

Under what circumstance should a company record an asset impairment loss?

• A)When residual value is greater than the repairs and maintenance expenses needed to keep the asset.
• B)When net book value is less than the residual value of the asset.
• C)When accumulated depreciation equals the purchase cost of the asset.
• D)When net book value is greater than expected future cash flows for the asset.

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Definitions:

Variable-Ratio Schedule

A schedule in which reinforcement is provided after a variable number of correct responses.

Fixed-Ratio Schedule

A schedule in which reinforcement is provided after a fixed number of correct responses.

Fixed-Interval Schedule

A type of operant conditioning reinforcement schedule where rewards are delivered at fixed intervals of time, provided that the correct response is made.

Contingency Theory

A leadership theory that proposes the effectiveness of a leader is contingent upon how well the leader's style matches the circumstances.