3. S1: An entity shall measure a noncurrent asset or disposal group classified asheld for sale at the lower of carrying amount and recoverable amount.S2: Anoncurrent asset that is to be abandoned shall not be classified as held for salebecause it is unlikely that the noncurrent asset will be sold within twelve months.A. Both statements are trueB. Both statements are falseC. Only statement 1 is trueD. Only statement 2 is true4. In order for a noncurrent asset to be classified as held for sale, the sale mustbe highly probable, which requires the following, except *A. The asset must be actively marketed at a sales price that is reasonable in relationto the fair value.B. Presence of an active marketing programC. Marketing program or plan is unlikely to be significantly changed or withdrawnD. Commitment to a plan to sell the assetO E. None of them

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I for sale at the lower of carrying amount and recoverable amoun current asset that is to be abandoned shall not be classified as he ause it is unlikely that the noncurrent asset will be sold within twe

I for sale at the lower of carrying amount and recoverable amoun current asset that is to be abandoned shall not be classified as he ause it is unlikely that the noncurrent asset will be sold within twe

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.

Question

3. S1: An entity shall measure a noncurrent asset or disposal group classified as
held for sale at the lower of carrying amount and recoverable amount.S2: A
noncurrent asset that is to be abandoned shall not be classified as held for sale
because it is unlikely that the noncurrent asset will be sold within twelve months.
A. Both statements are true
B. Both statements are false
C. Only statement 1 is true
D. Only statement 2 is true
4. In order for a noncurrent asset to be classified as held for sale, the sale must
be highly probable, which requires the following, except *
A. The asset must be actively marketed at a sales price that is reasonable in relation
to the fair value.
B. Presence of an active marketing program
C. Marketing program or plan is unlikely to be significantly changed or withdrawn
D. Commitment to a plan to sell the asset
O E. None of them

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