What Type of Account Is a Revaluation Surplus

question 36

Multiple Choice

What type of account is a revaluation surplus?

• A) Income
• B) Equity
• C) Asset
• D) Liability

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Definitions:

Marginal Returns

The additional output produced as a result of utilizing one more unit of input, which can decrease as more units are added.

Labor

The physical and mental effort used in the production of goods and services.

Capital

Resources or assets that are used in the production of goods and services, including physical assets like machinery and buildings, and intangible assets like patents.

Fixed-Proportion

A production process in which the inputs are used in fixed ratios, with no substitution possible between them.