In Testing for Recoverability of Property, Plant, and Equipment, an Impairment

Multiple Choice

In testing for recoverability of property, plant, and equipment, an impairment loss is required if the:

A) Asset's book value exceeds the undiscounted sum of expected future cash flows.
B) Undiscounted sum of its expected future cash flows exceeds the asset's book value.
C) Present value of expected future cash flows exceeds its book value.
D) All of these answer choices are incorrect.