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20. 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
20. 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. 21. An intangible asset shall be recognized initially at a. Cost. b. Fair value. c. Fair value less cost to sell. d. Recoverable amount. 22. All of the following expenditures are expensed when incurred except: a. Organization costs. b. Administration and other general overhaul costs. c. Costs of preparing the asset for its intended use. d. Costs incurred while an asset is already capable of operating in a manner intended by management has yet to be brought into use. 23. According to IAS 38 Intangible Assets, in case an entity cannot identify in which phase a cost is incurred, the cost is a. Regarded as incurred in the research phase. b. Regarded as incurred in the development phase. c. Allocated equally to research and development phases. d. Expensed as regular expense. 24. An entity may subsequently measure an intangible asset using the revaluation model a. At the option of the entity. b. Only when the intangible asset has an indefinite useful life. c. Only when an active market exists for that intangible asset. d. At no circumstances. 25. The amortization of an intangible asset with a definite useful life shall start when a. It is available for its intended use. b. Its cost can be measured reliably. c. It is probable future economic benefits attributable to the asset will flow to the entity. d. It is certain that future economic benefits attributable to the asset will flow to the entity
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