A Change in Accounting Policy from the Revaluation Model to the Cost

question 1

Multiple Choice

A change in accounting policy from the revaluation model to the cost model requires a retrospective adjustment to the:

• A)revenue in the profit and loss statement
• B)expenses in the profit and loss statement
• C)opening balance of retained earnings
• D)other comprehensive income.

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Definitions:

Investment Tax Credit

A tax credit offered to businesses to encourage specific types of investments.

Real GDP

The measure of a country's economic output adjusted for price changes, such as inflation or deflation, to reflect the true value of goods and services produced.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), reflecting the real quantity of goods and services produced.