Jam Pty Ltd Has Two Cash Generating Units

question 16

Multiple Choice

Jam Pty Ltd has two cash generating units. CGU A had a carrying amount of $700 and value in use of $750. CGU B has a carrying amount of $900 and a value in use of $800. The carrying amount of the head office assets is $400. CGU A and B utilise the head office services equally. The impairment loss for CGU A is:

• A) $0.
• B) $50.
• C) $150.
• D) $350.

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Definitions:

Wholesaler

A type of business that buys goods in large quantities directly from manufacturers or distributors and resells them to retailers or other businesses.

Retail Distribution Center

A specialized facility that handles the storage and distribution of goods to retail stores or directly to customers, often involving inventory management, order fulfillment, and transportation logistics.

Manufacturer's Representative

An individual or business that sells a manufacturer's products to wholesale and retail customers, but does not take ownership of the goods.

Marketing Channel

Pathways and intermediaries involved in the process of moving a product or service from the producer to the consumer.