When Using the Revaluation Model of Accounting for PP&E Assets

question 22

Multiple Choice

When using the revaluation model of accounting for PP&E assets (proportionate method) ,

• A) a Revaluation Surplus account is not used.
• B) depreciation continues to be charged in the original pattern.
• C) the asset account and its related contra-asset are both adjusted.
• D) over the life of the asset, it is possible that there can be a net increase in net income from revaluations.

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Definitions:

Export

The selling of goods or services produced in one country to buyers in another country.

Import

The process of bringing goods or services into one country from another for the purpose of selling.

Domestic Price

The price at which goods or services are sold within a country's borders, unaffected by import or export tariffs.

Equilibrium Level

The state at which market supply and demand balance each other, resulting in stable prices.