Under Private-Entity GAAP, to Determine If There Is an Impairment

question 4

Multiple Choice

Under private-entity GAAP, to determine if there is an impairment loss:

• A)Compare the fair value of the identifiable assets to the book value of the assets
• B)Compare the fair value of the reporting unit against the carrying value of the reporting unit
• C)Compare the imputed current fair value of goodwill with the carrying value of goodwill
• D)Compare the imputed carrying value of the assets with the fair value of the assets

---

Definitions:

Payroll Tax

Taxes imposed on employers and employees, based on the wages and salaries paid to workers, used to fund social security and other government programs.

Great Recession

A profound global economic downturn that began in 2007 and lasted until 2009, marked by significant declines in economic activity worldwide.

Social Security Taxes

Social Security taxes are taxes collected from employees and employers to fund the Social Security program, providing retirement, disability, and survivors' benefits.

Government Expenditures

The total amount of spending by the government, including on services, infrastructure, and social welfare programs.