What Is the Basic Accounting Entry for an Initial Revaluation

question 17

Multiple Choice

What is the basic accounting entry for an initial revaluation decrease of a non-depreciable asset?

• A) Debit expense on revaluation of asset; credit asset
• B) Debit asset; credit expense on the revaluation of asset
• C) Debit revaluation surplus reserve; credit asset
• D) Debit asset; credit revaluation surplus reserve

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Definitions:

Long-run Supply Function

A relationship showing the quantity of a good that producers are willing and able to supply to the market at different price levels in the long run, taking into account all possible adjustments including those in resources and technology.

Rental Apartments

Housing units that are leased to tenants under a rental agreement, typically involving periodic payments in exchange for the right to occupy the property.

Civic Authorities

Government or municipal bodies responsible for managing local affairs, services, and regulations within a community or city.

Long-run Supply Function

A relationship showing the quantity of goods that will be supplied over a longer period when all inputs can be varied.