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ikadub [295]
3 years ago
9

The accumulated depletion of a natural resource is reported on the a.income statement as an increase in revenue b.balance sheet

as depreciation from the cost of the resource c.balance sheet as a deduction from the cost of the resource d.income statement as a deduction from revenues
Business
1 answer:
nalin [4]3 years ago
5 0

Answer:

c. balance sheet as a deduction from the cost of the resource

Explanation:

As we know that

The depreciation expense is to be charged on the fixed assets i.e building account, plant & machinery account, equipment account, furniture fixtures accounts, etc

Whereas the accumulated depletion is charged on the natural resources i.e minerals, coals, etc

It is shown in the asset side of the balance sheet

Asset side

Natural resource                       XXXXX

Less: Accumulated depletion  (XXXXX)

The Net balance of natural resource XXXXX

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