Firms recognize an impairment loss when the carrying amount of a tangible fixed asset is deemed not recoverable as specified by GAAP. GAAP defines a carrying amount as not recoverable if

• A. it is greater than the sum of the cash flows expected from the assets use and disposal.

• B. it is greater than the sum of the undiscounted cash flows expected from the assets use and disposal.

• C. it is less valuable than its current carrying value.

• D. it is less valuable than its current fair value.

Which of the following best describes the accounting treatment for derivative instruments not held for purposes of hedging?

• A. Record as an asset or liability and recognize changes in fair value in other comprehensive income.

• B. Do not record as an asset or liability, record income from the transaction at maturity and recognize in earnings.

• C. Record as an asset or liability, recognize changes in fair value currently in earnings.

• D. Record as an asset or liability if off-balance sheet risk is material.