At Reporting Date, the Carrying Amount of a Cash-Generating Unit $\bullet$

question 23

Multiple Choice

At reporting date, the carrying amount of a cash-generating unit was considered to be have been impaired by $800. The unit included the following assets:
$\bullet$ Land $4000;
$\bullet$ Plant $3000;
$\bullet$ Goodwill $1000.
The carrying amount of Goodwill after the impairment loss is allocated is:

• A) $0;
• B) $200;
• C) $900;
• D) $1000.

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Definitions:

Net Income

The net income of a company, which is the remaining amount of total revenues after deducting all expenses, taxes, and costs.

Net Cash Flows

The difference between a company's cash inflows and cash outflows during a specific period, reflecting its ability to generate cash.

Cash Payback Period

The time it takes for a business to recuperate its investment in a project, measured by the flow of cash into the organization.

Net Present Value Method

A method used to evaluate investments by calculating the difference between the present value of cash inflows and outflows over a period of time.