- This topic has 1 reply, 2 voices, and was last updated 10 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Sir help me
what is meant by cash generating unit?
what is the qualifying conditions for being cash generating unit?
and what will be the most appropriate examples.I understand a cash generating unit as the smallest number of assets that generate cash independently.
In his lecture, Mike points out there there are few assets that generate cash by themselves, and gives the example of a vending machine that could generate cash flows independently. He points out that in a classroom, an individual chair doesn’t earn cash flows. It’s the aggregate of all the chairs, tables etc that earn cash flows, so these collectively represent a cash generating unit.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.