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:

Performance

The level at which an individual, device, system, or component accomplishes its designated functions.

Means-Ends Chain

A conceptual framework that links desired outcomes (ends) with the actions or resources (means) required to achieve them.

Higher-Level Objectives

Goals set at a strategic level that aim to achieve broader organizational visions and long-term success.

Lower-Level Objectives

Specific, measurable goals set at a lower hierarchy within an organization, aimed at supporting higher-level strategic objectives.