U.S.GAAP or IFRS Require Firms to Test

question 36

Multiple Choice

U.S.GAAP or IFRS require firms to test

• A)annually for impairment losses on goodwill.
• B)whenever there is an indication of impairment due to changes in the legal or economic climate.
• C)whenever there is an indication of impairment due to adverse regulatory conditions.
• D)whenever there is an indication of impairment due to loss of key personnel.
• E)all of the above

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Definitions:

Cumulative Net Profit

The total net profit of an entity over a period, accumulating all the net profits and losses from each period within the timeframe.

Fourth Year

Usually refers to the final year of a four-year educational program, such as a high school or university degree.

Probability

The likelihood of a specific event or outcome occurring, expressed on a scale from 0 (impossible) to 1 (certain).

Cumulative Profit

Cumulative profit is the total sum of profit earned over a period of time.