Which of the Following Statements Is Not True About Revaluation

question 26

Multiple Choice

Which of the following statements is not true about revaluation accounting?

• A)Revaluation must be done regularly.
• B)Revaluation can be applied to tangible assets whose fair values can be reliably measured.
• C)Revaluation can be applied to intangible assets if the assets have an active market.
• D)Revaluation is applied to individual assets.

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Definitions:

Cost Per Equivalent Unit

A calculation used in process costing that divides total manufacturing costs by the number of units produced, adjusting for unfinished units.

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.

Weighted-Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all goods available for sale during the period.

Equivalent Units

A concept in cost accounting used to equate units partially completed at the end of a period to units of finished goods.