In testing for impairment of an operational asset, an impairment loss has occurred if the:

A) Asset's book value exceeds the present value of its expected future cash flows.

B) Expected future cash flows exceeds the asset's book value.

C) Present value of expected future cash flows exceeds its carrying value.

D) Asset's book value exceeds the expected future cash flows.

Answer: D

The amount of impairment loss is the excess of book value over:

A) Carrying value.

B) Future cash flows.

C) Fair value.

D) Future revenues.

Answer: C

Accounting for impairment losses:

A) Involves a two-step process to first test for impairment and then record the loss.

B) Applies only to depreciable, operational assets.

C) Applies only to assets with finite lives.

D) All of these.

Answer: A