When the Revaluation Results in an Increase,a Debit Is Made

question 19

Multiple Choice

When the revaluation results in an increase,a debit is made to the asset account,which account does the revaluation ?surplus go?

• A)Equity
• B)Liability
• C)Asset
• D)Contra-Asset

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Definitions:

Break-even Point

The level of production or sales at which total revenues equal total costs, resulting in no profit or loss.

Dollar Sales

The total revenue a company generates expressed in monetary terms, without taking into account the cost of goods sold.

Contribution Margin Ratio

A financial metric used to analyze the profitability of a product, calculated as (Sales - Variable Costs) / Sales.

Target Profit

Pre-determined earnings a company aims to achieve within a specific period.