Answer the following statements true (T) or false (F)
1. A natural resource is an asset that comes from the earth and is consumed.
2. The process by which businesses allocate a natural resource's cost to expense over its usage is known as depreciation.
3. The units-of-production method is used to compute depletion expense.
4. Depletion expense should not be recorded for natural resources because they do not decrease in value over time.
1. TRUE
2. FALSE
Explanation: The process by which businesses allocate a natural resource's cost to expense over its usage is known as depletion.
3. TRUE
4. FALSE
Explanation: Depletion is recorded because the company is using up a natural resource.
You might also like to view...
The term "alternative marketing" ncludes the following, except:
A) buzz marketing B) social networks and blogs C) guerrilla marketing D) product placement
Under a defensive strategic market plan, calculate the market share of a company that generates sales revenue of $50 million in a market where the total demand is $493 million
A) 5.6% B) 10.14% C) 25% D) 32.3% E) 5.89%
The business analysis stage represents the first large jump in financial investment in the new product development process
Indicate whether the statement is true or false
During the sales presentation, the salesperson should provide information that encourages the prospect to develop positive beliefs about the product.
Answer the following statement true (T) or false (F)