Troubadour Limited Had an Existing Revaluation Surplus in Respect to an Item

question 6

Multiple Choice

Troubadour Limited had an existing revaluation surplus in respect to an item of Plant that had been derecognised.An appropriate journal entry to transfer the surplus to retained earnings would include:

• A)DR Gain on revaluation - OCI
• B)CR Asset revaluation surplus
• C)DR Retained earnings
• D)CR Retained earnings.

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Definitions:

Order Size

The quantity of goods a customer requests in a single purchase transaction.

Economic Order Quantity

A deterministic inventory model that determines the optimal order quantity minimizing total inventory costs, including holding and ordering costs.

Total Annual Cost

The total amount spent on specific activities or operations, including both fixed and variable costs, over the course of a year.

Holding Costs

The expenses associated with storing inventory, including warehousing, insurance, depreciation, and opportunity costs of keeping stock.