If the Recoverable Amount of a Cash-Generating Unit Exceeds Its

question 39

Multiple Choice

If the recoverable amount of a cash-generating unit exceeds its carrying amount:

• A)the carrying amount must be increased to the recoverable amount.
• B)there is no impairment loss.
• C)the carrying amount must be decreased to the fair value.
• D)there is an impairment loss.

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Definitions:

Consumption

The employment of goods and services within home environments.

Income

Monetary payment received for work or through investments.

Interest Rate

The fraction of a loan that incurs interest costs for the borrower, usually described as an annual percentage rate.

Utility Function

A mathematical representation of how a consumer's satisfaction or preference for goods and services is dependent on their consumption levels.