Accounting Multiple Choice Question – 9 December 2021

A company has revalued its fixed assets upwards during the most recent accounting period.

What will be the effect of this?

Select ONE answer:

1. to increase capital employed and increase profits
2. to increase capital employed and reduce profits
3. to reduce capital employed and reduce profits
4. to reduce capital employed and no effect on profits

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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