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:

Salvage Value

The projected remaining value of an asset following its operational lifespan, once depreciation or amortization has been taken into account.

Recoverable Ore

The portion of ore that can be economically and technically extracted or produced at a profit.

Depletion

The allocation of the cost of natural resources over their useful life, used in accounting to match the expense of extracting natural resources with the revenue generated from them.

Machinery Installation

The process of setting up and configuring industrial machinery in a specific location for operational use.