A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2021 · Q171 Mark

A company revalued its premises upwards. Which statement about the increase in value is correct?

AIt is an unrealised profit.

BIt is debited to the revaluation reserve.

CIt is recorded in the income statement.

DIt can be used to pay cash dividends.

✓ Correct answer

A: It is an unrealised profit.

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Preparation of financial statements and see which topics are most likely to come up next.

About this question

Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2021 Paper 1 Variant 2, question 17.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Accounting questions

Preparation of financial statementsFeb/Mar 20161m

P joined the partnership of G and H. He brought into the business the following assets. non-current assets cost $2500…

Preparation of financial statementsFeb/Mar 20161m

X and Y have capital accounts of $50000 each and share profits equally. They plan to admit Z into partnership. The ne…

Preparation of financial statementsFeb/Mar 20161m

David and Jane have been business partners for several years, sharing profits in the ratio of 2:1. Jane now wishes to…

Reconciliation and verificationFeb/Mar 20161m

A sales ledger control account was prepared. An irrecoverable debt of $40 was omitted and a discount allowed of $68 w…

Reconciliation and verificationFeb/Mar 20161m

The trial balance totals are as follows: debit $500 150 credit $500 000 Which error could have caused the difference?

Analysis and communication of accounting informationFeb/Mar 20161m

The statement of the financial position of a company shows the following: $ tangible non-current assets 20 600 intang…

← Browse all past-paper questions