An asset is considered impaired if: O the fair market value of the asset exceeds the carrying value of the asset O the future estimated cash inflows are less than the carrying value of the asset O the future estimated cash inflows are less than the fair market value of the asset the carrying amount of the asset exceeds the fair market value of the asset

An asset is considered impaired if: O the fair market value of the asset exceeds the carrying value of the asset O the future estimated cash inflows are less than the carrying value of the asset O the future estimated cash inflows are less than the fair market value of the asset the carrying amount of the asset exceeds the fair market value of the asset

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section19.5: Declining-balance Method Of Depreciation

Problem 4AYU

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A loss on impairment on a limited life intangible asset is the difference between the asset’s Select one: carrying value and its undiscounted expected future net cash flows. fair value and its net realizable value. fair value and its discounted expected future net cash flows. carrying value and its fair value.
Once an asset has been determined to be impaired, the amount of impairment is measured as: The asset's cost minus the fair value The asset's future cash inflows minus the book value The asset's book value minus the fair value The asset's cost minus the book value
Impairment loss is a situation whenSelect one:a. Carrying amount of an asset is greater than recoverable amount of it.b. Carrying amount of an asset is smaller than that of recoverable amount of it.c. Carrying amount of an asset is equal to recoverable amount of it.d. Correct option is not listed
Impairment of an intangible asset occurs when the book value of an asset is less than the fair value. True O False
What is an impairment loss? A ) The amount by which the carrying amount of an asset exceeds the book value B ) The amount by which the carrying amount of an asset exceeds the recoverable amount C ) The difference between the fair value of an asset and the net realisable value of the asset D ) The amount by which the market value of an asset exceeds the net present value
Assets intended to be held and used for productive purposes may suffer from impairment in each of the following circumstances except O A change in the way the assets are used or physical change in the assets. O Asset costs incurred exceed the original amounts planned. Discounted expected future cash flows and interest charges are less than the carrying amount of the assets. O A significant adverse change in legal factors that might affect the assets' fair value.
Which of the following is a CORRECT statement about long-term asset impairment? A. Under U.S. GAAP, an asset that has been written down because of impairment can be written back up if it increases in value in the future. B. An asset is impaired if the net book value is less than the expected future cash flows. C. If an asset is impaired, the expected future cash flows will exceed the fair value of the asset. D. If an asset is impaired, the impairment loss is the difference between the net book value and the fair value.
When market value of an asset is higher than book value, depreciation is not charged. A True B False
In a replacement analysis, the market value of the currently owned asset a. does not impact the cash flows of the replacement asset(s) in the opportunity cost approach b. does not impact the cash flows of the current asset in the cash flow approach if the current asset is kept c. is treated as a salvage value for the current asset in the cash flow approach if the current asset is kept d. is added to the first cost of the replacement asset(s) in the opportunity cost approach.
Which of the following is not a part of the impairment test of equipment under IFRS? Group of answer choices determine the asset's fair value less costs to dispose determine the fair value of the cash-generating unit without the asset determine the asset's carrying value determine the discounted value of the future cash flows expected to be derived from the asset
Which of the following is not a part of the impairment test of equipment under IFRS? Group of answer choices determine the fair value of the cash-generating unit without the asset determine the discounted value of the future cash flows expected to be derived from the asset determine the asset's fair value less costs to dispose determine the asset's carrying value
Impairment of a long-term operating asset occurs when ________. Group of answer choices an asset or part of an asset is removed from the asset portfolio an asset's total future cash-generating ability falls below its carrying value there is a failure to meet the legal obligations or conditions of a loan by which that asset was acquired the carrying value of the asset is systematically reduced over its useful economic life