Testing Intangible Assets with Indefinite Useful Lives for Impairment

question 63

Multiple Choice

Testing intangible assets with indefinite useful lives for impairment:

• A) occurs every year.
• B) occurs when only there has been an indication of an impairment in the value of the asset such as a reduction in cash flow generation, idle assets, etc.
• C) never occurs because the asset has an indefinite useful life.
• D) occurs whenever required by the company's auditors.

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Definitions:

Overloading

The situation wherein a system or individual is given more work or responsibility than they can manage.

Underutilizing

Not making the most effective or efficient use of resources, employees, or capabilities.

Time Management

The process of organizing and planning how to divide one’s time between specific activities efficiently and effectively.

Communication

The giving and receiving of ideas, feelings, and information among people.