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:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision. It represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.

BAT Model

Stands for the Behavioral Adjustment Target model, which is a concept in finance that deals with the adjustments investors make based on behavioral economics principles.

Weekly Cash Flows

The movement of cash in and out of a business on a weekly basis, indicating its operational liquidity position.

Annual Interest Rate

The percentage increase in money stored in a financial institution or invested, calculated on an annual basis.