Which of the Following Is a CORRECT Statement About Asset

question 93

Multiple Choice

Which of the following is a CORRECT statement about asset impairment?

• A)An asset is impaired if the net book value is less than the estimated future cash flows.
• B)If an asset is impaired,the future cash flows will exceed the book value.
• C)Under GAAP,an asset that has been written down because of impairment can be written back up if it increases in value in the future.
• D)If an asset is impaired,the impairment loss is the difference between the net book value and the fair value.

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Definitions:

Educational Attainment

The total years of formal education.

Income

The amount of money brought into a household from various sources during a given year (wages, investment income, dividends, etc.).

Independent Variable

A variable in an experiment or study that is manipulated to determine its effect on the dependent variable.

Dependent Variable

In research, it’s the outcome or factor that researchers are interested in understanding or predicting, which changes in response to the independent variable.