When Natural Resources Are Used, the _____ Expense Account Is

question 94

Multiple Choice

When natural resources are used, the _____ expense account is increased for a portion of the cost of resources removed.

• A) depletion.
• B) deferral.
• C) prepaid
• D) amortization.

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Definitions:

Loanable Funds

The funds available for borrowing in the financial markets, coming from savings and investments, used for loans.

Closed Economy

An economic system that does not engage in international trade, relying solely on its own internal markets.

Taxes Minus Transfers

The net fiscal contribution of an individual or sector, calculated by subtracting government transfers received from taxes paid.

Private Saving

The portion of individuals' or households' income that is not used for consumption or paying taxes and is instead saved.