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

Question

Business

Jadon Hutchinson

16 August, 15:19

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

+5

Answers (1)

Know the Answer?

Bj · Answer 1

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.