Which of the Following Is Not True

question 146

Multiple Choice

Which of the following is not true?

• A)Under U.S.GAAP, firms must test property, plant, and equipment for possible asset impairment when conditions indicate that a significant decrease in fair value has occurred.
• B)Under U.S.GAAP, firms initially compare the undiscounted cash flows expected from the asset to the asset's carrying value.
• C)Under U.S.GAAP, a fixed asset impairment occurs when the asset's carrying value exceeds the undiscounted cash flows.
• D)Under U.S.GAAP, the amount of the recognized impairment loss is the excess of the carrying value over the fair value of the asset.
• E)Under U.S.GAAP, firms recognize an impairment loss when the carrying value of a fixed asset exceeds its recoverable amount, the higher of (1) the fair value less cost to sell, and (2) value in use.

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Definitions:

Emotional Response

An individual's psychological reaction to an external stimulus, which can involve feelings, behaviors, and physiological changes.

Physiological Changes

Alterations in the body's normal biological functions which can occur due to various factors such as stress, aging, or illness.

Physiological Changes

Alterations in the body's normal biological functions, which can occur due to factors like stress, emotional states, and environmental changes.

James-Lange Theory

A theory of emotion proposing that emotions occur as a result of physiological reactions to events.