When Using the Revaluation Model

question 12

Multiple Choice

When using the revaluation model:

• A)ongoing record keeping costs are generally lower than if the cost model were used.
• B)the values reported will provide more relevant information to users of the financial statements.
• C)depreciation costs will generally be lower than under the cost model.
• D)the entities financial statements will be consistent with USGAAP requirements.

---

Definitions:

Cost/Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives, used to determine options that provide the best approach to achieve benefits while preserving savings.

Expected Benefits

The anticipated advantages or positive outcomes that are predicted to result from a particular action or policy.

Uncertain Environments

Conditions wherein the outcome of business operations is unpredictable due to changing external factors.

Informed Guessing

Making decisions or predictions based on available data and insights, even in the absence of complete information.