When an Entity Adopts the Valuation Model to Account for Its

question 8

Multiple Choice

When an entity adopts the valuation model to account for its property,plant and equipment,which of the following statement(s) is/are correct?

• A) If an item is revalued, all assets in the same class shall be revalued.
• B) If an asset's carrying amount is decreased as a result of a revaluation, the decrease is always recognised in profit and loss.
• C) If an asset's carrying amount is increased as a result of a revaluation, the increase is always credited directly to equity.
• D) All of the given answers.
• E) None of the given answers

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Definitions:

Price Increases

A rise in the cost of goods or services, which can affect demand, supply, and the overall economy.

Demand Shifts Left

A demand shift left is when the demand curve for a good or service shifts to the left, indicating a decrease in demand at all price levels, often due to changes in consumer preferences, income, or substitutes.

Air Travel

The act of traveling in an aircraft, often commercially, where passengers are transported from one location to another.

Law of Demand

Economic principle stating that as the price of a good increases, the quantity demanded decreases, and vice versa, ceteris paribus.