Brown,Izan and Loh (1992)found that revaluations are more likely to take place:
A) in small firms with low value assets that wished to borrow more.
B) in industries that are strike prone.
C) in entities that are highly geared.
D) in industries that are strike prone and in entities that are highly geared.

Question

Quizplus · Accepted Answer

Brown, Izan, and Loh (1992) found that revaluations are more likely to take place in industries that are strike prone and in entities that are highly geared. This suggests that companies facing labor risks or financial challenges may be more likely to use revaluations as a way to improve their financial statements. However, the study did not find a significant link between revaluations and small firms with low value assets that wished to borrow more.

Brown,Izan and Loh (1992)found That Revaluations Are More Likely to Take