Q6. Identify the correct statement in each group? Note: There is one correct answer in each group of 3 - select the appropriate letter (i) If Property, plant and equipment is revalued upwards at the start of the year it will result in: A. A higher profit for the year B. No change to profit for the year C. A lower profit for the year (ii) Property, plant and equipment revaluations: D. The revaluation gain is released to the Statement of profit or loss when the asset is sold E. PPE can only be revalued if a fair value can reliably be determined F. Where a policy of revaluation is chosen, the asset must be revalued each year
Q6. Identify the correct statement in each group? Note: There is one correct answer in each group of 3 - select the appropriate letter (i) If Property, plant and equipment is revalued upwards at the start of the year it will result in: A. A higher profit for the year B. No change to profit for the year C. A lower profit for the year (ii) Property, plant and equipment revaluations: D. The revaluation gain is released to the Statement of profit or loss when the asset is sold E. PPE can only be revalued if a fair value can reliably be determined F. Where a policy of revaluation is chosen, the asset must be revalued each year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q6. Identify the correct statement in each group?
Note: There is one correct answer in each group of 3 - select the appropriate letter
(i) If Property, plant and equipment is revalued upwards at the start of the year it will result
in:
A. A higher profit for the year
B. No change to profit for the year
C. A lower profit for the year
(ii) Property, plant and equipment revaluations:
D. The revaluation gain is released to the Statement of profit or loss when the asset is sold
E. PPE can only be revalued if a fair value can reliably be determined
F. Where a policy of revaluation is chosen, the asset must be revalued each year
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