A Revaluation Surplus Is a Reserve Account That Arises When

Multiple Choice

A revaluation surplus is a reserve account that arises when:

A) an entity uses fair value rather than cost to measure its long-term assets.
B) an entity uses cost rather than fair value to measure its long-term assets.
C) management transfer funds out of retained earnings to put aside for future use.
D) an entity has an overseas subsidiary.