Question

The basic accounting entry for a revaluation decrement of a non-depreciated asset is:

Select one:
a. Debit Asset; credit Revaluation Expense.
b. Debit Asset; credit Revaluation Surplus.
c. Debit Revaluation Expense; credit Asset.
d. Debit Revaluation Surplus: credit Asset.

Answer 1

The basic accounting entry for a revaluation decrement of a non-depreciated asset is debit Revaluation Expense; credit Asset.

Step-by-step explanation:

The basic accounting entry for a revaluation decrement of a non-depreciated asset is option c: Debit Revaluation Expense; credit Asset.

When a non-depreciated asset is revalued downwards, the decrease in value is recognized as an expense. This expense is debited to the Revaluation Expense account and credited to the Asset account to reflect the decrease in the asset's value.

For example, if a building's value is revalued downwards, the decrease in value would be recorded as a debit to Revaluation Expense and a credit to the Building asset account.