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Basic Question 15 of 15
Asset revaluation ______
II. can be used by management to manage earnings.
III. affects depreciation, total assets, and shareholders' equity.
I. always reduces reported leverage.
II. can be used by management to manage earnings.
III. affects depreciation, total assets, and shareholders' equity.
User Contributed Comments 7
| User | Comment |
|---|---|
| boddunah | done finally with this chapter .wow a lot to memorize. |
| bantoo | Great questions for practice Lot to memorise. |
| moneyguy | How does an upward revaluation reduce reported leverage? |
| johntan1979 | Increased asset value ==> leverage is asset/equity |
| Adon | upward revaluation increases assets and equity equally. since leverage is almost always positive, increasing numerator and denominator equally will reduce the fraction (4/3 is less than 3/2) |
| Shaan23 | How are you done this chapter? There's like three more sections. |
| ashish100 | lol ^ |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
explain and evaluate how impairment and derecognition of property, plant, and equipment and intangible assets affect the financial statements and ratios
CFA® 2025 Level I Curriculum, Volume 2, Module 7.