Diamonds Are Usually Found in a Rock Called

question 13

Multiple Choice

Diamonds are usually found in a rock called

• A) graphite.
• B) kimberlite.
• C) gabbro.
• D) diorite.

Recognize the adjustments needed when changes occur in the estimated useful life or residual value of an asset.

Understand the concept and application of depletion in accounting for natural resources.

Identify and calculate different methods of depreciation for tangible assets.

Recognize and report the accumulated depletion and depreciation on the balance sheet.

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Definitions:

Supplies Expense

The cost associated with the consumable items used in the operation of a business, such as office supplies or cleaning materials.

Adjusting Journal Entry

An entry in accounting that is made at the end of an accounting period to record any unrecognized income or expense for the period.

Income Tax Expense

The cost incurred by businesses or individuals due to earnings, represented as an expense in financial statements and affecting net income.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment.