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If after revaluation the final balance sheet shows the new value of a liability. Which method does this indicate?

Answer and explanation

Correct answer: Real Revaluation method

When changed values appear in the final balance sheet the real revaluation method is used. In memorandum method book values are retained.

Related tags

Real RevaluationFinal Balance SheetLiability ValueAsset RevaluationReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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