Goodwill Is Said to Be Impaired If the Carrying Value

question 47

True/False

Goodwill is said to be impaired if the carrying value of the CGU including Goodwill is greater than its Fair Value.

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Definitions:

Ages Receivables

A method of categorizing accounts receivable according to the length of time an invoice has been outstanding.

Gross Accounts Receivable Approach

A method to estimate the total amount of receivables, including both collected and still outstanding payments.

Unadjusted Year End

The conclusion of a fiscal year before any adjustments are made for accounting purposes, such as accruals or deferrals.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.