An impairment loss on all assets except intangibles that do not require amortization arises when
A)the book value of the assets exceed the undiscounted cash flows.
B)the book value of the assets exceed the market value.
C)the market value of the assets exceed the undiscounted cash flows.
D)the book value of the assets exceed the discounted cash flows.
E)the book value of the assets exceed the liquidation value.

Question

Quizplus · Accepted Answer

An impairment loss occurs when the book value of an asset exceeds the undiscounted cash flows expected from its use and eventual disposal.

An Impairment Loss on All Assets Except Intangibles That Do