Which of the Following Is the Basic Accounting Entry for a Revaluation

question 11

Multiple Choice

Which of the following is the basic accounting entry for a revaluation decrease of a non-depreciable asset that is not a reversal of an original increase?

• A) DR Revaluation surplus reserve; CR Asset
• B) DR Asset; CR Revaluation surplus reserve
• C) DR Expense on revaluation of asset; CR Asset
• D) DR Asset; CR Expense on the revaluation of asset

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Definitions:

Economic Lives

The duration over which an asset is expected to be economically useful to its owner.

Projects

Specific tasks or programs undertaken to create value, achieve an objective or solve a problem, often within a defined scope and timeline.

Balance Due

The outstanding amount of money owed by a debtor to a creditor, which remains unpaid after any initial payments or deductions have been applied.

Current Lease

An active leasing agreement specifying the terms under which a lessee occupies or utilizes the leased asset.