Which of the Following Statements Is Incorrect

question 89

Multiple Choice

Which of the following statements is incorrect?

• A)Under the revaluation model, the carrying amount of property, plant and equipment is adjusted to reflect its fair value.
• B)With the revaluation model, revaluation gains are recorded in Other Comprehensive Income.
• C)Companies can chose to use the cost model or the valuation model for investment properties.
• D)Other Comprehensive Income is closed to Retained Earnings.

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Definitions:

Grignard Reaction

A chemical reaction in which an alkyl, vinyl, or aryl-magnesium halide (Grignard reagent) adds to a carbonyl group in an aldehyde or ketone.

Epoxide

A cyclic ether with a three-atom ring, consisting of an oxygen atom and two carbon atoms.

Aldehyde

Organic compounds characterized by the presence of a carbonyl group bonded to at least one hydrogen atom.

Ketone

An organic compound characterized by a carbonyl group bonded to two other carbon atoms; important in organic chemistry and biology.