If Impairment Indicators Suggest That Property, Plant and Equipment Might

question 48

Multiple Choice

If impairment indicators suggest that property, plant and equipment might be impaired, the firm then performs a ________.

• A) one-step impairment test
• B) two-step impairment test
• C) three-step impairment test
• D) four-step impairment test

---

Definitions:

Productivity

Refers to the efficiency of production in terms of units produced per unit of input, such as labor or capital.

Resource

A resource is any physical or virtual entity of limited availability that needs to be consumed to obtain a benefit.

Productivity

The effectiveness in producing outcomes or results; can refer to the rate at which work is completed or the efficiency of resource use.

Output

The total amount of goods or services produced by a firm, industry, or economy within a specific period.