Which of the Following Statements Is Correct with Respect to AIS

question 15

Multiple Choice

Which of the following statements is correct with respect to AIS 12 Income Taxes when a non-current asset is revalued?

• A)On revaluation date, the revaluation reserve is increased by the product of the temporary difference and the tax rate.
• B)On revaluation date, the revaluation reserve is decreased by the product of the temporary difference and the tax rate.
• C)On revaluation date, a deferred tax liability is created equal to the amount of the temporary difference.
• D)On revaluation date, a deferred tax asset is created equal to the amount of the temporary difference.

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Definitions:

Sensory Signals

Electrical or chemical messages that are transmitted through the nervous system, providing information from the environment to the brain for processing.

Non-REM Sleep

The sleep stages 1 through 3, characterized by non-rapid eye movement and differing depths of sleep.

Metabolic Rate

The rate at which an organism uses energy to support its basic life functions.

Growth Hormone

A hormone that stimulates growth, cell reproduction, and cell regeneration in humans and other animals.