information needed to compute a depletion charge per unit includes the ?

a.Amount of resources sold during the period.

b.Cumulative amount of resources removed.

c.Estimated total amount of resources available for removal.

d.Amount of resources removed during the period.

2.A copyright is an example of which general category of intangible asset?

a.Contract-based

b.Artistic-related

c.Market-related

d.Customer related

3.Purchased goodwill should

a.Be written off as soon as possible against retained earnings.

b.Be written off as soon as possible as other expense.

c.Be written off by systematic charge as operating expense over the period benefited.

d.Not be amortized.

4.The most common method of computing depletion for accounting purposes is the?

a.Straight line

b.Percentage of depletion method

c.Decreasing charge method

5.When an asset's carrying amount is increased as a result of a revaluation, the increase shall be credited to?

a.Revaluation surplus as a component of other comprehensive income

b.Deferred income

c.Revaluation surplus as a component of profit or loss

d.Retained earnings

6.If payment for an asset is deferred beyond normal credit terms, the difference between the total payment and cash price equivalent should be

a.Considered interest expense of the current year

b.Amortized as interest expense over the credit period.

c.Included as part of the asset cost.

d.Amortized as interest expense over the life of the asset

7.Which of the following expenditure will never qualify as an exploration and evaluation asset?

a.Expenditures for activities in relation to evaluating the technical feasibility and commercial viability of extracting a mineral resource.

b.Expenditure for acquisition of rights to explore.

c.Expenditure for exploratory drilling

d.Expenditure related to the development of mineral resource

8.What is the treatment of accumulated depreciation on the date of revaluation?

I. Restated proportionately with the change in the gross carrying amount of the asset so that the carrying amount after revaluation ? II. Eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount of the asset.

a.Either I or II

b.I only

c.Neither 1 nor II

d.II only

9.Which of the following is not a criterion which must be met before development costs can be capitalized?

a.The entity can reliably identify the research costs incurred to bring the project to economic feasibility

b.The entity intends to complete the project and either use or sell the intangible asset.

c.The project has achieved technical feasibility.

d.The entity has sufficient financial resources to complete the project.

10.Plant assets purchased on long-term credit should be accounted for at?

a.None of these

b.The present value of the future payments

c.The total value of the future payments.

d.The future amount of the future payments.

11.Which of the following intangible assets should be reported as a separate line item?

a.Goodwill

b.Franchise

Patent

c.Trademark

12.It is a fall in the market value of an asset so that its recoverable amount is now less than its carrying amount in the statement of financial position.*

a.Depreciation

b.Amortization

c.Decline in value

d.Impairment