When Using the Revaluation Model

question 43

Multiple Choice

When using the revaluation model:

• A) ongoing record keeping costs are generally lower than if the cost model were used.
• B) the values reported for property, plant and equipment will provide more relevant information to users of the financial statements.
• C) depreciation expenses will generally be lower than under the cost model.
• D) the entity's financial statements will be consistent with US GAAP requirements.

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Definitions:

Resource Costs

The expenses associated with acquiring the materials and labor needed to produce goods or services.

Goal Accomplishment

The achievement or completion of objectives or targets set by an individual, group, or organization.

Top Level Managers

Senior executives responsible for the overall direction and success of an organization, making strategic decisions that affect the entire company.

Organizational Performance

The analysis of a company's efficiency, effectiveness, and capability to achieve its goals and objectives.