When Evaluating Whether an Asset Has Been Impaired, the Carrying

question 14

Multiple Choice

When evaluating whether an asset has been impaired, the carrying amount of the asset must be compared to recoverable amount. Recoverable amount is the higher of:

• A) initial cost: and, fair value;
• B) fair value less costs to sell: and, value in use;
• C) original cost: and, net present value;
• D) value in use: and, original cost.

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Definitions:

Communication Competency

The ability to effectively convey, receive, and interpret messages, information, and ideas, both verbally and non-verbally.

Describing Skill

The capability to articulate the characteristics, features, or qualities of an object, situation, or individual clearly and accurately.

Active Listening

The practice of fully concentrating on what is being said, rather than passively hearing the speaker, for better understanding and empathy.

Diversity

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