Indicate Whether Each of the Following Statements Is True or False

question 128

Short Answer

Indicate whether each of the following statements is true or false.
1. The entry to recognize an impairment loss would decrease a company's net income and total assets.
2. Intangible assets with indefinite useful lives are amortized over 5 years
3. A franchise is an intangible asset
4. Intangible assets with indefinite useful lives must be tested each year for impairment
5. If a company determines that the value recorded for goodwill is too high, an impairment loss must be recognized

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Definitions:

IASB Members

Individuals who are part of the International Accounting Standards Board, responsible for developing and enforcing financial reporting standards globally.

Economic Incentives

Financial or material rewards provided to businesses, individuals, or governments to encourage certain behaviors or actions.

Professional Competence

Refers to the ability of a professional to perform their job duties effectively, demonstrating expertise and adherence to ethical standards.

FASB

The Financial Accounting Standards Board is a private, non-profit organization responsible for establishing financial accounting and reporting standards for companies and non-profit organizations in the United States.