External Sources of Information That Would Indicate Possible Impairment Include

question 24

Multiple Choice

External sources of information that would indicate possible impairment include

• A)the carrying amount of the net assets of the entity is more than its market capitalisation
• B)internal reporting indicates that the economic performance of an asset is,or will be,worse than expected
• C)there is evidence of obsolescence or physical damage of an asset
• D)none of the above

Differentiate the components included and excluded in corporate annual reports and Management's Discussion and Analysis (MD&A).

Understand vertical and horizontal analysis, and their application in financial statement analysis.

Understand the basic financial ratios and their applications.

Conduct horizontal and vertical financial statement analysis.

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Definitions:

Axis

The second cervical vertebra (C2) of the spine, which allows the head to rotate.

Paranasal Sinuses

Air-filled spaces located around the nasal cavity that lighten the skull and modulate the voice.

Ethmoid

A sponge-like bone located at the roof of the nose and forming part of the nasal septum and the nasal cavities' walls.

Maxillary

Pertaining to the maxilla, the upper jawbone in vertebrates, which forms part of the structure of the mouth and face.