1. Differential reporting is based on:

	A. small and large proprietary companies having the same requirements to comply with accounting standards in the preparation of financial reports.
	B. the burden of additional reporting for some organizations in situations where there were questionable benefits to report preparers.
	C. the difference between the ability of shareholders in small' and those in large' companies to request information to satisfy their specific needs. D. none of the above

2. Which of the following term describes recognising a reassessment of the carrying

amount of a non-current asset to its fair value as at a particular date?

A. asset revaluation

B. amortisation

C. recoverable amount

D. impairment losses

3. A machine purchased by Daisy Ltd had a cost of $670 000 and an accumulated

depreciation balance of $120 000 on 30 June 2021. Its fair value is assessed at this

time, with its first revaluation as $350 000. What is/are the appropriate journal

entry(ies) to record the revaluation?

A. Dr	Accumulated depreciationmachine	120 000
Cr	Machine		120 000
Dr	Revaluation surplus	200 000
Cr	Machine		200 000

B. Dr	Loss on revaluation of machine	320 000
Cr	Machine		320 000

C. Dr	Accumulated depreciationmachine	120 000
Cr	Machine		120 000
Dr	Revaluation surplus	200 000
Cr	Accumulated depreciationmachine		200,000

D. Dr	Accumulated depreciationmachine	120 000
Cr	Machine		120 000
Dr	Loss on revaluation of machine	200 000
Cr	Machine		200 000