All of the Following Are True with Regard to Impairment

question 15

Multiple Choice

All of the following are true with regard to impairment testing of long-lived assets except:

• A) If impairment indicators are present, the company must conduct an impairment test.
• B) The impairment test compares the asset's carrying value with the lower of its fair value less cost to sell and its value-in-use.
• C) If the recoverable amount is lower than the carrying value, an impairment loss will be reported on the period's income statement.
• D) If either the fair value less cost to sell or the value-in-use is higher than the carrying amount, no impairment loss will be recorded.

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