If a Natural Resource Is Extracted and Not Sold,which of the Following

question 55

Multiple Choice

If a natural resource is extracted and not sold,which of the following accounts are debited and credited?

• A)debit Depletion Expense and credit Accumulated Depletion
• B)debit Cost of Goods Sold and credit Inventory
• C)debit Accumulated Depletion and credit Natural Resource
• D)debit Inventory and credit Natural Resource

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Definitions:

Federal Taxes

Taxes levied by the national government on income, property, sales, and other activities, used to fund public services and programs.

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and progressive taxes, that automatically adjust to stabilize economic fluctuations.

Business Cycle

The natural rise and fall of economic growth over time, characterized by periods of expansion, peak, contraction, and trough.

Federal Government

The national government of a federal country, where powers are divided between central authority and constituent political units, such as states or provinces.