Which of the Following Is/are True About Holding Gains on Assets

question 150

Multiple Choice

Which of the following is/are true about holding gains on assets?

• A)U.S.GAAP recognizes the holding gain on the assets for the increase in values.
• B)IFRS permits recognition of the holding gains under certain circumstances.
• C)IFRS precludes recognition of the holding gain on assets for the increase in values.
• D)Under U.S.GAAP, if in a given period, an asset increases in value, the firm does not record depreciation and amortization during that period.
• E)Under IFRS, if in a given period, an asset increases in value, the firm does not record depreciation and amortization during that period.

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Definitions:

Overload Relay Coil

A coil used in an overload relay to provide protection by breaking the circuit in case of excessive current flow.

Level Switch

A device used to detect the level of liquid or solid materials within a container or environment, triggering an action when a certain level is reached.

Temperature Switch

A device that activates or deactivates based on a specific temperature threshold being reached.

Proximity Sensor

A device that detects the presence or absence of a nearby object without physical contact, often using electromagnetic fields, light, or sound.