Which of the Following Is a CORRECT Statement About Long-Term

question 168

Multiple Choice

Which of the following is a CORRECT statement about long-term asset impairment?

• A)An asset is impaired if the net book value is less than the expected future cash flows.
• B)If an asset is impaired,the expected future cash flows will exceed the fair value of the asset.
• C)Under U.S.GAAP,an asset that has been written down because of impairment can be written back up if it increases in value in the future.
• D)If an asset is impaired,the impairment loss is the difference between the net book value and the fair value.

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Definitions:

Violating An Injunction

The act of disregarding or not complying with a court order that prohibits a specific action.

Robbing A Small Business

The act of illegally taking property from a small business through threats or violence.

Statute Of Limitations

A law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case or claim, after which the legal claim is no longer valid.

Petty Theft

The theft of property of relatively low value, considered a minor crime.