13. Which of the following statements is not true about depletion? a. Depletion is considered as cost of materials used in production. b. Depletion is treated as part of cost of sales in the period of extraction. c. Depletion is computed by using the units of output method only. d. All these statements are true about depletion. 14. When there is a revision of depletion rate a. The revision is treated as change in accounting estimate. b. The revision is treated as change in accounting policy. c. The entity shall record any gain or loss from revision. d. The entity shall directly adjust retained earnings as a result of the revision. 15. Which of the following depreciation methods approximates the method used to deplete the cost of natural resources? a. Straight-line method. b. Sum of the years digits method. c. Double declining balance d. Units of production method. 16. Cost of wasting asset is commonly divided into four categories that does not include: a. Restoration cost. b. Exploration cost. c. Development cost. d. Importation cost. 17. What method of accounting is used to account for investments in associate? a. Cost method. b. Fair value method. c. Equity method. d. Consolidation method. 18. Exploration and evaluation asset are initially measured at a. Cost. b. Fair value. c. Fair value less estimated costs of disposal. d. Present value. 19. Which of the following is not part of the amount of subject to depletion? a. Acquisition cost of the mineral resource deposit. b. Exploration cost. c. Tangible development cost associated with equipment used to extract the mineral resource. d. Intangible development cost such as drilling, tunnel and shaft