Under AASB 116 When an Asset Is Revalued and the Net

question 16

Multiple Choice

Under AASB 116 when an asset is revalued and the net method is used,accumulated depreciation:

• A) must be written back to profit.
• B) must be closed off to equity account.
• C) should be eliminated against the gross carrying amount of the asset before revaluation.
• D) should be increased by the same proportion as the gross carrying amount of the asset so that the carrying amount of the asset after revaluation equals the revalued amount.
• E) None of the given answers.

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Definitions:

Activity-Based Costing

A pricing approach that allocates overhead and indirect expenses to corresponding products and services according to the activities involved.

Time-Driven

A term that refers to processes or methodologies that are controlled or measured based on time, such as time-driven activity-based costing.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, providing more accurate costing information.

Cost Analysis

This refers to the process and methods used to evaluate the costs associated with a project or a business operation in order to determine its feasibility or cost-efficiency.