An impairment loss must be recognized when...
A) The present value of the asset's future cash flows is higher than the asset's fair value
B) The present value of the asset's future cash flows is lower than the asset's fair value
C) An asset's book value is lower than its fair value
D) An asset's book value is higher than its fair value
Option B is the answer | |
Asset should be impaired when the estimated future cash flows is lower than the carrying value of the asset. Comment if you face any issues Thank you |
An impairment loss must be recognized when... A) The present value of the asset's future cash flows is higher than the a...
The impairment loss on long-term plant assets equals: Question 30 options: A) estimated future cash flows minus present value. B) net book value minus fair value. C) estimated future cash flows minus fair value. D) net book value minus estimated future cash flows. Williamson Company declared and distributed a 10% stock dividend when it had 100,000 shares of $1 par value common stock outstanding. The market price per share of common stock was $50 per share when the dividend was...
The impairment loss for an asset that a company intends to hold and use is the difference between? a. Assets book value and its lower fair value b. Assets book value and its fair value c. Present value of discounted cash flows and the book value d. Asset’s fair value and the present value of the discounted cash flow
The measurement of an asset's value based on the discounted future cash flows relating to the asset is present value. future value. historical value. net realizable value.
ACC206: Financial Reporting MCQ please help!! urgent, no need for explanations 1. When can an investment property be derecognised under FRS 40 Investment Property? a. Possible in all the listed options. b. Only when it is disposed to a third party. c. Only when no future economic benefits are expected from its disposal. d. Only when it is permanently withdrawn from use. 2. At the end of its fiscal year, an adverse economic condition caused AA Ltd to perform an...
Gravy Incorporated owns patents with a book value of $190,000. Expected future cash flows of $210,000 is estimated. The patent has a fair value of $140,000. How much, if any, Is the impairment loss? Explain your response.
1) After doing goodwill impairment test in year 2019, the carrying value including goodwill of S Co. was: * a) $1,401,000 b) $1,403,000 c) $1,400,000 d) $1,402,000 2) After doing goodwill impairment test in year 2018, the result was: * a) Impairment loss of $13,000 b) No Impariment loss c) Impairment loss of $12,000 d) Impairment loss of $10,000 On January 1, 2018, P Company acquired the net assets of S Company for $1,600,000 cash. The fair value of S...
"Present value equals the present value of all cash flows accruing to the asset's owner". do you agree to this? why or why not?
Question 47 The higher of either the asset's future value or the amount it can be sold for, is known as: Not yet answered Marked out of 1.00 Select one: a. the book value Flag question b. the recoverable amount O c. the carrying value d. the retail sale value Question 48 Which principle would you use to determine the accounting period in which revenue and expenses are recognized? Not yet answered Marked out of 1.00 Select one: a. the...
ACC206: Financial Accounting MCQ 2.0 1. HL Ltd purchased a high speed industrial equipment at a cost of $420,000. Shipping costs totalled $15,000. Foundation work has to be done to house the equipment at HL Ltd’s premises and costs $8,000. An additional water line had to be run to the equipment at a cost of $3,000. Labour and testing costs totalled $6,000. Materials used up in testing cost $3,000. Under FRS 16 Property, Plant and Equipment , the capitalised cost...
Accounting (a) Peppers Corporation owns machinery with a book value of $190,000. It is estimated that the machinery will generate future cash flows of $180,000. The machinery has a fair value of $140,000. Record Peppers’ journal entry to recognize any loss that needs to be recognized for impairment. (b) Dillman Corporation owns machinery with a book value of $190,000. It is estimated that the machinery will generate future cash flows of $195,000. The machinery has a fair value of $150,000....