Which of the following is NOT likely to be an indicator of possible asset impairment?
A) evidence of obsolescence or physical damage
B) a significant decrease in the asset's market value
C) the book value of the entity's net assets is greater than the entity's market capitalization
D) costs incurred for asset acquisition or operation are significantly lower than originally expected

Question

Quizplus · Accepted Answer

Asset impairment indicators typically include factors that suggest an asset's carrying amount may not be recoverable, such as obsolescence, physical damage, or a decrease in market value. Costs being lower than expected for acquisition or operation do not suggest impairment; they could even be positive for the entity's profitability.

Which of the Following Is NOT Likely to Be an Indicator