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:

Additional Working Capital

Extra funds that a company requires to finance its day-to-day operations beyond its current working capital.

Salvage Value

The evaluated resale price of an asset after its lifespan of usefulness.

Straight-Line Method

A depreciation technique where an asset loses an equal amount of value each year over its useful life.

Payback Period

The duration needed to recoup the expenses of an investment.