In Relation to an Asset Revaluation Surplus, an Entity

question 21

Multiple Choice

In relation to an asset revaluation surplus, an entity

• A) is not able to use this surplus for the payment of future dividends;
• B) is able to use this surplus for the payment of future dividends;
• C) is not able to transfer this surplus to any other reserve account;
• D) can transfer the surplus to current period profit or loss when the asset is disposed of.

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Definitions:

Fair Outcomes

Equitable and impartial results or conclusions in a given situation, ensuring justice and equality.

Procedures

Established methods or steps for conducting business, operations, or other routine tasks to achieve consistency and efficiency.

Equity Theory

A theory of motivation that suggests individuals are motivated by a sense of fairness in their interactions.

Input

Contributions, resources, or information provided towards a process or system in order to achieve an output or result.