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:

General Sales Tax

A broad-based tax imposed on sales of goods and services, typically at the point of sale.

Laffer Curve

A theoretical representation showing the relationship between tax rates and the amount of tax revenue collected by governments.

Marginal Tax Rates

The percentage of tax applied to your income for each tax bracket in which you qualify, effectively the rate on the last dollar of income earned.

Tax Revenues

The income that is collected by governments through the imposition of various taxes, which is used to fund public services and policies.