Multiple choice

Directions: Choose the correct option for the given question.

Unrecorded assets are mentioned in .............. account/ statement.

  1. balance sheet

  2. P & L account

  3. revaluation account

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Unrecorded assets are assets that exist but weren't recorded in the books. When discovered during admission, retirement, or revaluation, they are credited to the Revaluation Account. This increases the revaluation profit/loss. The asset is then recorded in the books at its fair value, ensuring proper accounting for all firm assets.

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