An Impairment Occurs When an Asset's Carrying Value Falls Below

question 47

True/False

An impairment occurs when an asset's carrying value falls below its total future cash-generating ability.

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Definitions:

Assets

Resources owned by a company that have economic value and are expected to provide future benefits.

Revenues

The total amount of money earned by a company from its normal business activities, typically from the sale of goods and services to customers.

Trial Balance

A financial worksheet where all ledger balances are totaled into debit and credit columns which balance equally.

Office Supplies

Items used in offices for daily operations, such as stationery, paper clips, and staplers.