Which of the Following Statements Is Incorrect in Relation to Disclosure

question 5

Multiple Choice

Which of the following statements is incorrect in relation to disclosure of balances for property, plant and equipment?

• A) An entity must disclose the useful life estimates for each class of assets.
• B) A summary of movements in the revaluation surplus is required to be disclosed.
• C) The gross carrying amounts of the assets at both the beginning and the end of the financial period must be disclosed.
• D) Information on assets carried at revalued amounts must be disclosed on an individual asset basis.

---

Definitions:

Over-Allocated Overheads

A situation where the allocated overhead costs exceed the actual overhead costs incurred.

Actual Overheads

The total amount of indirect costs that a business incurs during production, which may include costs related to utilities, rent, and salaries.

Cost of Goods Manufactured

The total production cost of goods that were completed during a specific accounting period.

Flow of Costs

Describes the movement of costs from inventory to the cost of goods sold in accounting.