Under the Provisions of AASB 116,concerning an Asset That Has

question 23

Multiple Choice

Under the provisions of AASB 116,concerning an asset that has been re-valued upward,which statement is correct?

• A) If the asset is disposed of, the revaluation surplus can remain in the accounts after the disposal of the asset that created it
• B) The amount of the revaluation increment is included in equity without being included in net profit
• C) Neither of the statements is correct
• D) Both of the statements are correct

Comprehend the importance of adjusting entries in accurately reporting a company’s financial position and performance.

Recognise the role and impact of errors in adjusting entries on financial statements.

Understand the concept and purpose of adjusting entries in the accounting process.

Identify the types of accounts affected by adjusting entries and their impact on financial statements.

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Definitions:

Attitudes

Attitudes are psychological tendencies expressed by evaluating a particular entity with some degree of favor or disfavor, often influencing behavior or perceptions.

Simple Sentence

A sentence structure containing a single independent clause with a subject and a predicate.

Complex Sentence

A sentence type that consists of at least one independent clause and one or more dependent clauses.

Proposition

A statement or assertion that expresses a judgment or opinion.