TRUE OR FALSE

1.The double declining balance method, the fixed rate is determined following a mathematical formula.

2.Depreciation ceases when the asset is derecognized.

3.When the asset retired is replaced by a similar asset, the replacement is recorded by debiting the asset account and crediting cash or other appropriate account.

4.Depreciation ceases when the asset becomes idle temporarily

5.The useful life of an intangible asses is indefinite when there is no foreseeable limit to the period over which the asset is expected to generate net cash flows.

6.The omission of depreciation may somehow impair legal capital if and when dividends are declared out of earnings before provision for depreciation.

7.Mineral resources include minerals, oil, natural gas and similar regenerative resources.

8.Straight line depreciation is a variable charge over the useful life of the asset.

9.An intangible asset is identifiable if it cannot be sold, transferred, licensed, rented or exchanged separately .

10.When an asset in the group is retired, no gain or loss is reported.

11.The variable methods assume that Depreciation is more on passage of time rather than a function of use.

12.Depreciation of an asset begins when it is already being used in the operations.

TEST II

_____ is determined by dividing the total annual depreciation by the total cost.

_______ consist of cash or property received from customers but which are refundable after compliance with certain conditions.

______ is determined by dividing the total depreciable amount by total annual depreciation.

CHOICES

a. DEPRECIABLE AMOUNT b. RESIDUAL VALUE c. PATENT d. TRADEMARK e. COPYRIGHT f. PREMIUMS g. REFUNDABLE DEPOSITS h. COMPOSITE LIFE i. COMPOSITE RATE

NEED ANSWER ASAP