When Assessing the Recoverable Amount of Assets That Have Previously

question 9

Multiple Choice

When assessing the recoverable amount of assets that have previously been subject to an impairment loss, which of the following indicators assist in providing external evidence that an impairment loss has reversed:

• A) a decrease in market interest rates during the period.
• B) a significant decrease in the asset's market value during the period.
• C) an adverse effect on the entity from significant changes that have taken place.
• D) internal reporting sources indicate that the economic performance of the asset will not be as good as expected.

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Definitions:

Dual Purpose Corporation

A business entity designed to operate for both profit and to achieve a social or charitable goal.

General Partnership

A partnership in which the partners divide profits and management responsibility and share unlimited personal liability for the partnership’s debts.

Business Losses

Business losses are the negative financial impacts a business suffers, often reflected in its financial statements as expenses exceeding revenues.

Personal Liability

The legal responsibility of an individual to fulfill obligations or debts out of their own assets.