Which of the Following Statements Is True About Assessing Recoverability

question 42

Multiple Choice

Which of the following statements is true about assessing recoverability of an asset?

• A)If the sum of the undiscounted cash flows exceeds the carrying value of the asset,then the asset is impaired.
• B)If the sum of the discounted cash flows exceeds the carrying value of the asset,then the asset is impaired.
• C)If the sum of the undiscounted cash flows exceeds the carrying value of the asset,then the asset is not impaired.
• D)If the sum of the discounted cash flows exceeds the carrying value of the asset,then the asset is not impaired.

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Definitions:

Federal Poverty Line

A measure of income issued annually by the Department of Health and Human Services used to determine eligibility for certain federal programs and benefits.

Wage Gap

The disparity in earnings between different groups of workers, often defined by gender, race, or age.

Poverty

A situation where an individual or society does not possess the necessary financial means or basic necessities to maintain a basic living standard.

Social Policies

Guidelines, principles, legislation, and activities that affect the living conditions conducive to human welfare, such as those affecting healthcare, education, and housing.