Which of the Following Is Not a Difference Between the Accounting

question 69

Multiple Choice

Which of the following is not a difference between the accounting treatment for depreciation and cost depletion?

• A) Depletion applies to natural resources while depreciation applies to plant and equipment.
• B) Depletion refers to the physical exhaustion or consumption of the asset while depreciation refers to the wear, tear, and obsolescence of the asset.
• C) Many formulas are used in computing depreciation but only one is used to any extent in computing depletion.
• D) The cost of the asset is the starting point from which computation of the amount of the periodic charge is made to operations for depreciation, but the fair value reassessed each year as the starting point for the periodic charge for depletion.

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Definitions:

Free Carpels

Free carpels are individual units of the pistil in flowering plants that are not fused together, each containing one or more ovules from which seeds develop.

Single Seed

Refers to plants or fruits that produce or contain only one seed, distinguishing them from those that have multiple seeds.

Achene

A simple, dry fruit with one seed in which the fruit wall is separate from the seed coat (e.g., sunflower fruit).

Seed Coat Fused

A condition in some seeds where the outer protective layer, the seed coat, is naturally joined or united with other parts of the seed.