A Change in Accounting Policy from the Revaluation Model to the Cost

question 8

Multiple Choice

A change in accounting policy from the revaluation model to the cost model requires a retrospective adjustment to the:

• A) revenue in the profit or loss statement.
• B) expenses in the profit or loss statement.
• C) opening balance of retained earnings.
• D) other comprehensive income.

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Definitions:

Personality Development

The growth and changes in an individual's character and behavioral traits over time, influenced by genetic, environmental, and social factors.

Practical and Realistic

Having an approach or mindset focused on dealing with things sensibly and realistically, based on practical rather than theoretical considerations.

Idealistic and Grand

Pertaining to having high ideals or grand ambitions, often characterized by optimism and a desire for significant achievements.

Realistic and Unexciting

Describing something that is practical and possible to achieve but lacks excitement or appeal.