Question 1 (True or False) If an assets carrying is increased as a result of a revaluation, the increase shall be recognized in other comprehensive income and accumulated in equity under the heading of revaluation surplus. Question 2 The initial journal entry for a revaluation increase is: a. Dr Asset, Cr Gain on revaluation of non-current asset b. Dr Asset Cr Income Summary c. Dr Asset Cr Asset Revaluation Reserve d. Dr Accumulated Depreciation Cr Asset e. None of the above Question 3 To reflect the tax-effect of the gain on revaluation, the required journal entry is: a. Dr Income tax expense Cr Deferred tax liability b. Dr Future income tax benefits Cr Deferred tax liability c. Dr Deferred tax liability Cr Future income tax benefits d. Dr Income tax expense Cr Gain on asset revaluation e. Dr Gain of asset revaluation Cr Asset revaluation reserve Question 4 (True or False) A revaluation increase is credited to an asset revaluation surplus unless the increase reverses a revaluation decrease previously recognized as an expense Question 5 The basic accounting entry for a revaluation decrease of a non-depreciable asset that is not a reversal of an original increase is which of the following? a. Debit expense on revaluation of asset; credit asset b. Debit asset; credit expense on the revaluation of asset c. Debit revaluation surplus reserve; credit asset d. Debit asset; credit revaluation surplus reserve