The accumulated depletion account is a.an expense account b.reported on the income statement as other expense c.reported on the

Question

Cerrena [4.2K]

3 years ago

6

The accumulated depletion account is a.an expense account b.reported on the income statement as other expense c.reported on the

balance sheet as a deduction from the cost of the mineral deposit d.an intangible asset account

Business

1 answer:

bonufazy [111] · Answer 1 · 2022-05-28T10:41:18+03:00

Answer:

The answer is c.reported on the balance sheet as a deduction from the cost of the mineral deposit.

Explanation:

Accumulated Depletion Account is the account showing the accumulated depletion expenses relating to the use/exploitation of natural resources since the beginning.

Just like Accumulated Depreciation Account, The Accumulated Depletion Account is a contra-asset account which is reported on the Balance Sheet under the Natural Resources Account; the net effect of the two account shows the net book value of Natural Resources Account.

Thus, c. reported on the balance sheet as a deduction from the cost of the mineral deposit. is the correct choice.