A company would need to record an impairment loss for its equipment when
a. the original cost of the equipment exceeds its fair value and is deemed not recoverable.
b. management determines that the equipment will no longer be used.
c. the carrying amount of the equipment exceeds its fair value and is deemed not recoverable.
d. the cash flows from the equipment are less than its fair value.
C
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All of the following are principal provisions of the Sarbanes-Oxley Act of 2002 except:
a. At least one member of the audit committee of the board of directors must be a "financial expert.". b. The lead audit or coordinating partner and the reviewing partner of the public accounting firm must rotate, or change, every five years. c. The firm's chief executive officer and the chief financial officer must issue a statement along with the audit report stating that the financial statements and notes fairly present the operations and financial position of the firm. d. The FASB has oversight and enforcement authority over the SEC.
Which of the following terms designates the maximum number of shares of stock that a corporation may issue?
A. Par value B. Number of shares issued C. Number of shares authorized D. Number of shares outstanding
Agency relationships created against public policy are void and unenforceable
Indicate whether the statement is true or false
A system in which each shareholder votes the number of shares he or she owns on candidates for each of the positions open is known as cumulative voting
Indicate whether the statement is true or false