If a Mining Company Extracts 1,500,000 Tonnes in a Period

question 168

Multiple Choice

If a mining company extracts 1,500,000 tonnes in a period but only sells 1,200,000 tonnes,

• A) accumulated depreciation on the mine is based on the 1,200,000 tonnes.
• B) depreciation included in cost of goods sold is based on the 1,500,000 tonnes extracted.
• C) depreciation included in cost of goods sold is based on the 1,200,000 tonnes extracted and sold.
• D) a separate accumulated depreciation account is set up to record depreciation on the 300,000 tonnes extracted but not sold.

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Definitions:

Centerbore

A large hole in the center of a wheel where it mounts to a hub on the vehicle.

Mounting Surface

The area or interface on which a component, device, or mechanism is installed or secured.

Wheel Depth

Measurement of the distance from the outer wheel surface to the mounting plate, important for fitting wheels to a vehicle correctly.

Radial Tires

Tires designed with the cords at a 90-degree angle to the travel direction, offering improved handling, wear, and fuel efficiency compared to bias-ply tires.