USGAAP Provisions Require a Three-Step Procedure for Measuring and Recording

question 106

Multiple Choice

U.S.GAAP provisions require a three-step procedure for measuring and recording impairments for long-lived assets other than nonamortized intangibles and goodwill.An asset impairment loss arises when the carrying values of the assets

• A)exceed the sum of the discounted cash flows.
• B)exceed the sum of the undiscounted cash flows.
• C)exceed the replacement cost.
• D)exceed the fair market value less cost to sell.
• E)exceed the fair market value.

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Definitions:

Standard Score Mean

A statistical measure that indicates how many standard deviations an observation or datum is from the mean of a distribution.

Analytic Intelligence

A type of intelligence which includes executive processes such as analyzing, comparing, and evaluating.

Creative Intelligence

A type of intelligence which involves creating, inventing, or designing new ways of solving problems when individuals are faced with an unfamiliar situation.

Practical Intelligence

An assessment developed by Louis and Thelma Thurstone to measure the seven primary mental abilities proposed by Thurstone’s Primary Mental Abilities theory.