Which of the Following Statements Regarding Increases in the Value

question 222

Multiple Choice

Which of the following statements regarding increases in the value of plant assets under U.S. GAAP and IFRS is true?

• A) IFRS prohibits upward asset revaluations.
• B) Under GAAP, a company can reverse an impairment and record that increase in income.
• C) U.S. GAAP prohibits companies from recording increases in the value of plant assets.
• D) U.S. GAAP allows companies to record increases in the value of plant assets.
• E) Under IFRS, an impairment increase beyond as asset's original cost is not recorded.

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Definitions:

Amortized

Amortized refers to gradually reducing the principle amount owed on a debt over time through a fixed repayment schedule.

Compounded Monthly

Interest on an investment or loan calculated each month and added to the principal, affecting the amount of future interest.

Refinanced

The action of replacing an existing debt with a new one, often with more favorable terms or a lower interest rate.

Total Debt Service Ratio

A debt measure that financial institutions use to evaluate a borrower's ability to manage monthly payments and repay debts.