The Statement Relating to Revaluations of Non-Current Assets That Is

question 22

Multiple Choice

The statement relating to revaluations of non-current assets that is not true is:

• A)Before assets are revalued any existing accumulated depreciation must be written off against the asset account
• B)A revaluation decrease should be included as a reduction in profit
• C)A revaluation increase is regarded as income to be added to the firm's profit for the year
• D)Future depreciation charges will be based on the revalued carrying amount of the asset

---

Definitions:

Consumer Surplus

The amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.

Monopolistically Competitive Price

Refers to the price level set by firms in a monopolistically competitive market, where many firms sell products that are differentiated from one another and not perfect substitutes.

Price Increases

A rise in the cost of goods or services, often measured by the rate of inflation.

Quantity Demanded

The total amount of a good that consumers are willing to purchase at a given price over a specified period.