When There Is Clear Evidence of an Increase in Net

question 143

True/False

When there is clear evidence of an increase in net realizable value because of changed economic circumstances, the amount of a previously recorded writedown is reversed.

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Definitions:

Net Assets

The total assets of a company minus its total liabilities.

Deferral Method

An accounting practice that involves postponing the recognition of certain income or expenses until a later accounting period, typically to match revenue with expenses more effectively.

Donation Revenue

Income received from gifts or donations, often characterized by the absence of an expected return or direct benefit to the donor.

Restricted Contribution

Funds given to an organization with stipulations on their use, requiring the organization to apply them to a specified project or purpose.