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

question 93

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 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:

Tolerance

Tolerance is the capacity to endure pain or hardship, or in pharmacology, it refers to the body's adaptation to a drug which reduces its effects over time.

Quarrelsomeness

The tendency to engage in arguments or disputes easily, often with a hostile attitude.

Mood Swings

Rapid and often extreme fluctuations in one's emotional state, where feelings can change from highs (euphoria) to lows (despair) quickly or without apparent reason.

Impaired Mental

Refers to a reduction in cognitive functioning that affects processes such as memory, reasoning, and problem-solving.