In Relation to an Asset Revaluation Surplus,an Entity

question 8

Multiple Choice

In relation to an asset revaluation surplus,an entity:

• A)is not able to use this surplus for the payment of future dividends
• B)is able to use this surplus for the payment of future dividends
• C)is not able to transfer this surplus to any other reserve account
• D)can transfer the surplus to the current period profit or loss when the asset is disposed of.

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Definitions:

Independent Regulatory Agency

A federal agency created to enforce and regulate laws in specific sectors, operating independently from the executive branch.

Executive Branch

The branch of government responsible for implementing and enforcing laws, headed by the president and including the cabinet and other officials.

Cabinet Department

A major administrative unit in the executive branch of the federal government, headed by a secretary who is a member of the president's cabinet.

Civil Service System

A structure in government employment where workers are selected based on merit rather than political affiliation, promoting professionalism and efficiency.