Which of the Following Methods Does the FASB Consider the Best

question 24

Multiple Choice

Which of the following methods does the FASB consider the best indicator of fair values in the evaluation of goodwill impairment?

• A)Senior executive's estimates
• B)Financial analyst forecasts
• C)Market value
• D)The present value of future cash flows discounted at the firm's cost of capital

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Definitions:

FASB

The Financial Accounting Standards Board, an organization responsible for establishing and improving financial accounting standards in the United States.

Financial Accounting Standards Board

An independent organization responsible for establishing and improving standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information.

SEC

The Securities and Exchange Commission, a U.S. government agency that oversees and regulates the securities markets to protect investors.

Accounting Standards

Guidelines set by regulatory bodies that dictate how financial transactions and statements should be recorded and reported.