Which of the Following Statements Is True

question 42

Multiple Choice

Which of the following statements is true?

• A) During the 2011 legislative session, it became apparent that the booming state economy had dramatically increased state revenues.
• B) The effects of the Great Recession did not reach Texas, as the state enjoyed surplus revenues.
• C) The legislative session was particularly difficult because the Great Recession had significantly reduced state revenue.
• D) The Texas legislature did not meet in 2011.
• E) Resulting from the effects of the 2011 economic recession, the state budget deficit equals GDP.

---

Definitions:

Goodwill Impairment

This occurs when there is evidence that the value of goodwill has declined permanently beyond its recoverable amount, necessitating a write-down in its book value.

Amortization

The process of reducing the cost of a tangible or intangible asset through systematic, periodic deductions over its useful life.

Fair Value

An estimate of the price at which an asset or liability could be traded in an orderly transaction between market participants at the measurement date.

Unrealized Profits

Gains that have been achieved on paper from an investment but have not yet been realized through a sale or transaction.