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:

Price Cut

A reduction in the selling price of goods or services, usually aimed at increasing demand or facing competition.

Elastic Demand

An instance where the demand for a product exhibits substantial sensitivity to adjustments in its pricing.

Price Rise

An increase in the cost of goods or services, often due to factors such as inflation, demand surges, or production costs.

Concept of Elasticity

An economic measure of the sensitivity of an economic variable, such as demand or supply, in response to a change in another variable, such as price.