Private Entity GAAP Requires That Assets Must Be Assessed for Indications

question 48

Multiple Choice

Private entity GAAP requires that assets must be assessed for indications of impairment

• A)At the end of each reporting period.
• B)At the end of every quarter.
• C)When events and circumstances indicate that asset's carrying amount may not be recoverable.
• D)Whenever the method of depreciation has changed

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Definitions:

Percent Equivalent

The numeric representation of a ratio or fraction as a part of 100.

Fraction

A numerical quantity that is not a whole number, represented by two numbers divided by a line, indicating part of a whole.

Decimal Equivalent

The number obtained by dividing the numerator by the denominator in a fraction, expressed in decimal form.

Percent Equivalent

A way to express a number as a fraction of 100, commonly used to compare proportions.