Divisions May Be Set Up by Doing the Following -

question 2

Multiple Choice

Divisions may be set up by doing the following -

• A) choosing the method of allocation
• B) creating new divisions and allowing allocations in account ledgers
• C) creating new divisions
• D) none of the above

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Definitions:

Depletion Expense

A charge against profits representing the reduction in value of a natural resource as it is extracted or consumed.

Mining Property

Land or rights to land that are held for the purpose of extracting minerals, oil, or gas.

Ore

A naturally occurring solid material from which a metal or valuable mineral can be extracted profitably.

Straight-Line Depreciation

A procedure for spreading out the cost of a solid asset over the duration of its usability in equal annual payments.