Which of the following represents an event that indicates an asset's book value may not be recoverable?
A) A significant adverse change in how the asset is being used or in its physical condition.
B) A significant adverse change in legal factors or in the business climate.
C) A realization that the asset will be disposed of significantly before the end of its estimated useful life.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

All three events listed (significant adverse change in how the asset is being used or in its physical condition, significant adverse change in legal factors or in the business climate, and realization that the asset will be disposed of significantly before the end of its estimated useful life) can indicate that an asset's book value may not be recoverable, and therefore require impairment testing under generally accepted accounting principles.

Which of the Following Represents an Event That Indicates an Asset's