Which of the Following Statements Is Incorrect

question 92

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 choose to use the cost model or the revaluation model for property, plant and equipment.
• D) Reversals of revaluation gains or write-ups are prohibited.

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Definitions:

Diffusion

The process by which an innovation, idea, or trend spreads through a population or social system.

Innovation

The act of introducing something new, such as an idea, method, or device, intended to enhance efficiency, effectiveness, or pleasure.

Relative Advantage

The degree to which an innovation is perceived as better than the idea it supersedes.

Diffusion

The process through which an innovation is communicated over time among the participants in a social system.