Which Statement Relating to Mineral Resources Is Not True

question 46

Multiple Choice

Which statement relating to mineral resources is not true?

• A) The cost at which mineral resources are recorded may include amounts spent on exploration and development.
• B) As the mineral resource asset is used up its cost is proportionately transferred to an amortisation (depletion) expense account.
• C) The most common approach to the calculation of the depletion of mineral resources is the reducing-balance method.
• D) Accounting for mineral resources is governed by IAS 16/AASB 116.

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Definitions:

Agricultural Habitat

An environment modified by humans for the purpose of farming and raising livestock.

Island

A landmass smaller than a continent and entirely surrounded by water.

Succession

The process by which the structure of a biological community evolves over time, involving species replacements and shifts in ecosystem composition.

Character Displacement

Character displacement is an evolutionary phenomenon where species that compete for the same resources develop distinct traits or behaviors, reducing overlap in their ecological niches.