If an entity does not expect to recover the carrying amount of an asset, the entity has incurred a/an:

Question

Quizplus · Accepted Answer

If an entity does not expect to recover the carrying amount of an asset, it means there has been a significant reduction in the asset's value. This results in an impairment loss, which is recognized in the income statement as a separate line item. Therefore, the best choice is option D - impairment loss. Options A, B, and C do not reflect the situation described in the question.

If an Entity Does Not Expect to Recover the Carrying