The Ledger Account for Buildings Had a Balance of $720

question 41

Multiple Choice

The ledger account for buildings had a balance of $720 000 at the beginning of the year and a balance of $1 050 000 at the end of the year. If the buildings have been revalued upwards by $100 000 during the year what is the investing outflow for the period, for buildings, assuming no buildings were sold?

• A) $130 000
• B) $230 000
• C) $330 000
• D) $430 000

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Definitions:

Upstream Costs

Expenses incurred in the early stages of production, such as exploration and extraction in the oil and gas industry; they can include costs associated with locating natural resources and preparing them for processing.

Merchandising Entity

A business that purchases finished goods for resale, making a profit on the difference between buying and selling prices.

Intangible Outputs

Non-physical results produced by an organization, such as customer satisfaction, brand reputation, or intellectual property.

Service Organisations

Entities that primarily provide intangible products or services to customers rather than physical goods.