Regarding Impairment of Intangible Assets,which of the Following Statements Is

question 74

Multiple Choice

Regarding impairment of intangible assets,which of the following statements is incorrect?

• A) Impairment occurs when the fair value of an intangible asset is less than the book value.
• B) Intangible assets are impaired when there has been a permanent decline in the value of the asset.
• C) Intangible assets with an indefinite life are tested for impairment annually.
• D) If any impairment occurs, the company records a loss in the period in which the intangible asset was acquired.

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Definitions:

Carbohydrate

Monosaccharide (simple sugar) or the organic molecules composed of monosaccharides bound together by chemical bonds—for example, glycogen. For each carbon atom in the molecule, there are typically one oxygen molecule and two hydrogen molecules.

Subcutaneous Fat

The layer of fat located under the skin, serving as insulation to regulate body temperature and as an energy reserve.

Muscle Mass

Refers to the amount of muscle tissue in an individual's body, typically measured in terms of volume or weight.

Nutrients

Substances that provide nourishment essential for growth and the maintenance of life.