A long-term asset is said to be impaired when its fair value is below its book value.

Question

Quizplus · Accepted Answer

This statement is true. A long-term asset is considered impaired when the fair value of the asset is less than its book value, indicating that the asset may no longer be worth its recorded value on the company's balance sheet. When this occurs, the company may need to write down the asset's value, recognizing the impairment as a loss on its financial statements.

A Long-Term Asset Is Said to Be Impaired When Its