Question : Which of the following statements is correct in relation with revaluation account?
Option 1: Revaluation account is prepared to revise the value of assets
Option 2: Revaluation account is prepared not to revise the value of assets
Option 3: Revaluation account is prepared to old the value of assets
Option 4: All of the above
Correct Answer: Revaluation account is prepared to revise the value of assets
Solution : Answer = Revaluation account is prepared to revise the value of assets
The purpose of a revaluation account is indeed to revise or adjust the values of assets to their current market or fair values. It records any increase or decrease in the value of assets resulting from a revaluation exercise undertaken by a company.
Hence, the correct option is 1.
