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Problem 1: Realized revaluation surplus is transferred to retained earnings
a) Only upon disposal or retirement of plant asset.
b) Only during the period of use of the asset.
c) Upon disposal or retirement of the asset or during the period of use of the asset.
d) At no instance.
Problem 2: For items of property, plants, and equipment with insignificant changes in fair value, revaluations are necessary only every
a) Five years
b) Ten years
c) Three to five years
d) Five to ten years
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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