General Studies · Accounting Policies
Gamma's choice to adopt the Revaluation Model over the Cost Model for non-current assets, despite having identical operations to Delta, results in which of the following accounting impacts over time?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Lower reported ROE and lower Gearing, making Gamma appear less profitable but financially safer.
- 2Higher reported ROE and higher Gearing, making Gamma appear more profitable but riskier.
- 3Higher depreciation charges and lower Profit Before Interest and Tax (PBIT) over time, which reduces reported ROE.✓
- 4Lower reported ROE and higher Gearing, making Gamma appear riskier.
Correct answer
Higher depreciation charges and lower Profit Before Interest and Tax (PBIT) over time, which reduces reported ROE.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for General Studies?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Accounting Policies MCQs →Want more practice questions on Accounting Policies?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in General Studies · Accounting Policies