Which of the Following Is True Regarding the Accounting for Property,plant,and

question 40

Multiple Choice

Which of the following is true regarding the accounting for property,plant,and equipment under international accounting standards?

• A) Upward revaluations of property,plant,and equipment are not allowed.
• B) The option is available for an entity to adjust upward the carrying value of property,plant,and equipment to fair value.
• C) All entities must adjust upward the carrying value of property,plant,and equipment to fair value.
• D) An entity has the option to adjust upward the carrying value of property,plant,and equipment to fair value,with gains and losses being shown in other comprehensive income.

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Definitions:

Long-term Debt

Borrowings of a company that are due for repayment more than one year into the future.

Current Liabilities

Financial obligations that a company is expected to settle within a year, including accounts payable, short-term loans, and accrued expenses.

Sales Revenue

Earnings a company secures through the sale of goods or services provided.

Sales Taxes Payable

The amount of sales tax collected from customers that has not yet been remitted to the relevant taxation authority, representing a liability.