For several years, a number of food lion, inc. , grocery stores were unprofitable. the company closed some of these locations. it was apparent that the company would not be able to recover the cost of the assets associated with the closed stores. thus, the current value of these impaired assets had to be written down. a note in the financial statements indicated that the company tests assets for impairment when circumstances indicate that an impairment may exist. for impairment testing, each store is con-sidered a cash-generating unit. stores with potential impairments are tested by comparing their carrying value with their recoverable amount
a. explain why food lion wrote down the current carrying value of its unprofitable stores.
b. explain why the write- down of impaired assets is considered a noncash expense.

The new york times (nov. 30, 1993) reported that “the inability of opec to agree last week to cut production has sent the oil market into turmoil . . [leading to] the lowest price for domestic crude oil since june 1990.” why were the members of opec trying to agree to cut production? so they could save more oil for future consumption so they could lower the price so they could raise the price why do you suppose opec was unable to agree on cutting production? because each country has a different production capacity because each country experiences different production costs because each country has an incentive to cheat on any agreement the newspaper also noted opec’s view “that producing nations outside the organization, like norway and britain, should do their share and cut production.” what does the phrase “do their share” suggest about opec’s desired relationship with norway and britain? opec would like norway and britain to keep their production levels high. opec would like norway and britain to act competitively. opec would like norway and britain to join the cartel.