Recognition of impairment for tangible operational assets is required if book value exceeds:
A)Fair value.
B)Present value of expected cash flows.
C)Undiscounted expected cash flows.
D)Accumulated depreciation.

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), recognition of impairment for tangible operational assets is required if the undiscounted expected future cash flows from the use of the asset and its eventual disposition are less than the carrying amount (book value) of the asset. Therefore, choice C is the correct answer.

Recognition of Impairment for Tangible Operational Assets Is Required If