Which of the Following Is Correct Regarding International Accounting Standards

question 42

Multiple Choice

Which of the following is correct regarding international accounting standards for the impairment of intangible assets?

• A) Goodwill impairments may not be reversed.
• B) Goodwill impairments may be reversed.
• C) No impairment losses may be reversed.
• D) A distinction is made between impairment procedures for intangibles with finite and indefinite lives.

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Definitions:

Check Outstanding

A check that has been written and recorded in the issuing account but has not yet been cleared or cashed by the bank.

Bank Reconciliation

The process of comparing and adjusting the balance shown on a bank statement with the amount shown in a company’s records to ensure they match.

Internal Control

Procedures and policies implemented by a company to safeguard its assets, ensure accurate and reliable financial reporting, and comply with laws and regulations.

Cash

Liquid assets that a company or individual has available for transactions.