1)If an asset value recovers after an impairment loss has been recognized for the asset, what amount of restoration of that loss is recognized? a.The difference between the original cost and the new recoverable amount. b.The difference between the original loss and the new recoverable amount. c.The difference between the carrying amount and the new recoverable amount. d.None of the recovered value is recognized.
1)If an asset value recovers after an impairment loss has been recognized for the asset, what amount of restoration of that loss is recognized?
a.The difference between the original cost and the new recoverable amount.
b.The difference between the original loss and the new recoverable amount.
c.The difference between the carrying amount and the new recoverable amount.
d.None of the recovered value is recognized.
2) Occasionally, events occur that change an asset's value after purchase. Which of the following is true regarding these changes in value?
a.Increases in asset value are recognized.
b.Reductions in asset value are recognized.
c.Both decreases and increases are recognized.
d.Neither decreases nor increases are recognized.
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