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1. According to PAS 16, the selection of an appropriate depreciation method rests upon the entity's a. management. b. accountant. c. regulator d. all of these 2. Which of the following is not one of the essential characteristics of a PPE? a. tangible asset b. used in business c. primarily held for sale d. long-term in nature 3. PAS 16 requires an entity to review the depreciation method and the estimates of useful life and residual value at the end of each year-end. A change in any of these is accounted for using a. a specific transitional provision of a PFRS. b. retrospective application. c. prospective application. d. any of these 4. If plotted on a graph (X-axis: time; Y-axis: P), the depreciation charges under the straight-line method would show a. a straight-line. b. an upward line sloping to the right. c. a downward line sloping to the left. d. a curvilinear line sloping here and there. 5. Which of the following instances does not preclude an entity from recognizing depreciation during a certain period? a. The asset is fully depreciated. b. The asset is being depreciated using the units of production method and there is no production during the c. The asset is classified as held for sale under PFRS 5. d. The asset becomes idle or is taken out of active use. period