AASB 116 Permits the Following with Respect to Measurement of Non-Current

question 15

Multiple Choice

AASB 116 permits the following with respect to measurement of non-current assets using revaluation model.

• A) Net revaluation decrements for each class of asset are initially debited to asset revaluation reserve.
• B) Use of cost model to measure other assets in the same class.
• C) All increments arising from revaluation are credited to asset revaluation reserve.
• D) All of the given answers.
• E) None of the given answers.

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Definitions:

Notes Receivable

Represents amounts owed to a company that are evidenced by formal agreements or promissory notes.

Interest Revenue

Interest revenue is the income earned from lending funds or depositing funds in interest-bearing accounts.

Journalize Transactions

The process of recording financial transactions in a company's journal, marking the first step in the accounting cycle.

Credit Card Sales

Transactions where customers purchase goods or services using a credit card as the payment method.