Multiple Choice. Choose the best answer.

1.) What is a cash generating unit?

a. The group of assets that generate cash inflows from continuing use that are largely independent of the cash flows from other group of assets.

b. The smallest group of assets that generate cash inflows from continuing use that are largely independent of the cash flows from the other group of assets.

c. The largest group of assets that generate cash inflows from continuing use that are largely independent of the cash flows from the other group of assets.

d. The group of assets that generate cash inflows from continuing use that are not independent of the cash flows from other group of assets.

2.) Which of the following statements is incorrect about corporate asset?

a. Corporate assets are group or divisional asset such as head office building, EDP equipment or a research center.

b. essentially, corporate assets generate cash inflows independently from other assets.

c. The recoverable amount of an individual corporate asset cannot be determined unless management has decided to dispose of the asset.

d. If there is an indication that a corporate asset may be impaired, three recoverable amount of the cash generating unit to which the corporate asset belongs is determined and compared with the carrying amount of the cash generating unit.