Firms Must Conduct Impairment Tests More Frequently Than Annually When

question 50

Multiple Choice

Firms must conduct impairment tests more frequently than annually when

• A)other shareholders hold more than 50% interest.
• B)a "more likely than not" expectation exists that a reporting unit will be sold or disposed of.
• C)a specific unit does not have publicly traded stock.
• D)using the equity method.

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Definitions:

Compound Yield

The rate of return on an investment or loan, considering the effect of compounding interest.

Coupon Bond

A debt security that pays the investor periodic interest payments called coupons and returns the principal at the end of the maturity.

Par Value

Par Value is the face value of a bond or stock as stated by the issuer, which might not reflect its market value.

Yield To Maturity

The total return expected on a bond if held till its maturity date, including both interest payments and capital gains or losses.