Which Statement Relating to Revaluations of Non-Current Assets Is Not

question 20

Multiple Choice

Which statement relating to revaluations of non-current assets is not true?

• A) A revaluation increase is regarded as income to be added to the firm's profit for the year.
• B) Future depreciation charges will be based on the revalued carrying amount of the asset.
• C) Before assets are revalued any existing accumulated depreciation must be written off against the asset account.
• D) A revaluation decrease should be included as a reduction in profit.

---

Definitions:

Differentiated Product

A product that has distinct characteristics from its competitors, making it unique in the market.

Downward-Sloping Demand

A market condition where the quantity demanded of a good decreases as its price increases, adhering to the law of demand.

Barriers To Entry

Barriers to entry are obstacles that make it difficult for new competitors to enter an industry, protecting existing firms from competition and maintaining market power.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition based on factors other than price, such as quality and branding.