Reference no: EM132992479

Problem 1: Use of the double-declining balance method

a) Results in a decreasing charge to depreciation expense.

b) Means salvage value is not deducted in computing the depreciation base.

c) Means the book value should not be reduced below salvage value.

d) All of these.

Problem 2: Depreciation is normally computed on the basis of the nearest

a) Full month and to the nearest peso.

b) Full month and to the nearest centavo.

c) Day and to the nearest peso.

d) Day and to the nearest centavo.

Problem 3: Which of the following expenditures would never qualify as an exploration and evaluation asset?

a) Expenditure for acquisition of rights to explore

b) Expenditure for exploratory drilling

c) Expenditure related to the development of mineral resources

d) Expenditure for activities in relation to evaluating the technical feasibility and commercial viability of extracting a mineral resource