Which Statement Is Not Correct

question 19

Multiple Choice

Which statement is not correct?

• A)The three phases in mining activities are: mineral exploration, development and extraction.
• B)The accounting for mineral exploration is conceptually similar to that for research activities.
• C)Mineral exploration costs can be capitalized because markets for mineral resources are well established.
• D)A mineral site entering the development phase would normally satisfy the six criteria required for capitalization.

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Definitions:

Nonmonetary Exchange

Transactions in which businesses or individuals trade goods or services without the use of money or monetary units.

Fair Value

Fair value is the estimated price at which an asset or liability could be traded in a fair and open market transaction, reflecting its current market value.

Cost Base

The total amount of investment in an asset, used for tax purposes to determine capital gains or losses upon disposal.

Long-Lived Asset

Assets of a company that provide value for more than one fiscal year, such as buildings, machinery, and equipment.