Which of the Following Statements Is True Regarding Revaluation of Property,plant,and

question 34

Multiple Choice

Which of the following statements is true regarding revaluation of property,plant,and equipment to fair value?

• A)Only IFRS allows revaluation of property,plant,and equipment to fair value.
• B)Only U.S.GAAP allows revaluation of property,plant,and equipment to fair value.
• C)Both U.S.GAAP and IFRS allow revaluation of property,plant,and equipment to fair value.
• D)Neither U.S.GAAP nor IFRS allows revaluation of property,plant,and equipment to fair value.

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Definitions:

Tax Revenues

The income that is gained by governments through taxation, a primary source of public finance.

Transfer Payments

Payments made by the government to individuals without any expectation of a direct return, such as welfare, social security, and unemployment benefits.

Automatic Stabilizers

Economic policies and programs, such as unemployment benefits and progressive taxation, that automatically help stabilize an economy by increasing spending in a downturn and reducing spending in an upswing without additional government action.

Private Spending

Private Spending is the total expenditures by individuals and businesses in an economy, excluding government spending and investment.