USGAAP and IFRS Distinguish Three Categories of Long-Lived Assets for Purposes

question 23

Multiple Choice

U.S.GAAP and IFRS distinguish three categories of long-lived assets for purposes of measuring and recognizing impairment losses.The second category addresses intangibles, other than goodwill, not subject to amortization. This category does not include:

• A)brand names.
• B)trademarks.
• C)franchise rights.
• D)renewable licenses.
• E)none of the above

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Definitions:

Unanticipated Fluctuations

These are unexpected changes in financial markets, economic conditions, or company specifics that can influence financial outcomes.

Inventory Management

The practice of ordering, storing, tracking, and controlling inventory to ensure the availability of products while minimizing costs and storage space.

Stock-Out

A situation where inventory is exhausted and unavailable for sale or use, often leading to lost sales or production delays.

Collection Period

The average number of days it takes a company to collect payments owed by its customers for sales made on credit.