Which of the Following Accounts Is Part of Working Capital

question 11

Multiple Choice

Which of the following accounts is part of working capital?

• A)Retained Earnings
• B)Sales
• C)Merchandise Inventory
• D)Common Stock

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Definitions:

Depletion Expense

The process of transferring the cost of natural resources to an expense account.

Accumulated Depletion

The total amount of resource extraction accounted for as an expense over time, reducing the asset's value.

Straight-Line Method

An approach for calculating depreciation of an asset, which spreads the cost evenly over its useful life.

Depreciation

A process for spreading out the expense of a physical asset across its lifespan.