A recoverability test for impairment
A)is based on the discounted present value of the future cash flows from the asset.
B)requires SEC approval.
C)establishes that the asset is impaired.
D)only occurs when the asset is sold.
E)identifies the write-up value.

Question

Quizplus · Accepted Answer

A recoverability test for impairment is used to determine if an asset's carrying amount is not recoverable, indicating that the asset is impaired.

A Recoverability Test for Impairment