When Assessing the Recoverable of Assets That Have Previously Been

question 3

Multiple Choice

When assessing the recoverable of assets that have previously been subject to an impairment loss,which of the following indicators assist in providing external evidence that an impairment loss has reversed:

• A)the asset's market value has decreased significantly during the period
• B)significant changes with an adverse effect on the entity have taken place
• C)market interest rates have decreased during the period
• D)internal reporting sources indicate that the economic performance of the asset will not be as good as expected.

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Definitions:

Financial Crises

Severe disruptions in financial markets that occur when there is a sudden loss of confidence among investors, depositors, or consumers, often leading to a liquidity shortfall and economic downturn.

Financial Markets

Platforms or systems that facilitate the buying, selling, and trading of financial assets like stocks, bonds, and commodities, allowing for the allocation of capital and risk.

Discount Rate

The interest rate charged by central banks on loans they provide to commercial banks or financial institutions.

Money Supply

The entire amount of cash and cash equivalents present in an economy at a designated time, including money in the form of coins, notes, and funds held in checking and savings accounts.