Which of the Following Statements Relating to an Asset Revaluation

question 7

Multiple Choice

Which of the following statements relating to an asset revaluation surplus account is correct?

• A) An entity is able to use this surplus for the payment of future dividends.
• B) An entity is not able to transfer this surplus to any other reserve account.
• C) An entity is not able to use this surplus for the payment of future dividends.
• D) An entity can transfer the surplus to current period profit or loss when the asset is disposed of.

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Definitions:

Pericentriolar Material

Fibrils surrounding the centrioles in the microtubule-organizing centers in cells of animals and other organisms having centrioles.

Fibrils

Thin, elongated threads found in cells, often made of proteins, contributing to the structure and function of cells.

Centrioles

Cylindrical cell structure that is involved in the process of cell division and in the formation of spindle fibers that separate chromosomes during cell division.

Genes

Segments of DNA that encode for proteins and determine the traits and characteristics of organisms.