The General Rule Under Modified Historical-Cost Accounting Is That Holding

question 17

Multiple Choice

The general rule under modified historical-cost accounting is that holding gains on non-current assets should be:

• A) Treated as revenue in the period that the fair value of the asset changes.
• B) Deferred and amortised over the life of the asset (effectively decreasing depreciation expense).
• C) Taken to an asset revaluation reserve unless it is the reversal of a previous devaluation that was expensed. In that case it can be recognised as income to the extent the devaluation was recognised as an expense.
• D) Never recognised.
• E) None of the given answers.

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Definitions:

Muscarinic Blocking Agent

A muscarinic blocking agent is a type of drug that inhibits the action of acetylcholine at muscarinic receptors, affecting various bodily functions such as heart rate and glandular secretions.

Acetylcholine

A neurotransmitter that functions both in the brain and the body of many types of animals, including humans, where it plays a role in muscle contraction and acts as a neurotransmitter in the central and peripheral nervous systems.

Nicotinic Blocking Agent

A substance that inhibits the action at nicotinic acetylcholine receptors, affecting neuromuscular function.

ANS

Autonomic Nervous System, part of the peripheral nervous system that controls bodily functions not consciously directed, such as breathing and heart rate.