CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

A loss on impairment should be recognized when ______
A. the carrying value of the specific asset is too low.
B. the market value of the specific asset has fallen significantly below the book value.
C. replacement cost of the asset has risen.
Explanation: When the market value of the asset has decreased significantly, then an impairment loss should be recognized.

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