Depletion is:

A. An increase in the value of a natural resource when incurred.
B. The process of allocating the cost of natural resources to the period when it is consumed.
C. The process of allocating the cost of intangibles to periods when they are used.
D. Also called amortization.
E. Calculated using the double-declining balance method.


Answer: B

Business

You might also like to view...

When planning a trip to France, Jim and his wife, both Americans, were concerned about how much they could afford to spend in Europe because sometimes the U.S. dollar will buy more goods and sometimes it will buy less, based on changing economic conditions. The ____ rate is the rate at which the currency of one area or country can be exchanged for the currency of another's.

A. fluctuation B. dividend C. exchange D. transaction E. international

Business

Daily Needs and Smart Saves are two large retailers in Canada. They compete with each other using similar marketing strategies. Which form of competition is seen between these two retailers?

A. Scrambled merchandising B. Intrinsic competition C. Indirect competition D. Intertype competition E. Intratype competition

Business

The days' sales in receivables ratio gives an indication of the length of time that the receivables have been outstanding at the end of the year. This indication can be misleading if sales are seasonal and/or the company uses a natural business year

Indicate whether the statement is true or false

Business

________ are costs incurred after the company delivers poor-quality goods or services to customers and then has to make things right with the customer

A) Prevention costs B) Appraisal costs C) Internal failure costs D) External failure costs

Business