What Is True of Depletable Resources Is That

question 63

Multiple Choice

What is true of depletable resources is that

• A)increasing scarcity leads to their total disappearance.
• B)they are depleted by gradually using up the supply of homogeneous resources, every unit of which is equally available.
• C)generally the most accessible and cheapest sources are used up so that new supplies become more costly.
• D)their prices must rise at the average rate of inflation.

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Definitions:

IFRS

Global accounting guidelines known as International Financial Reporting Standards are used for the preparation of financial statements.

U.S. GAAP

United States Generally Accepted Accounting Principles - a framework of accounting standards, principles, and procedures used in the U.S. for financial reporting.

Revaluation

The process of reviewing and adjusting the carrying value of an asset or currency to reflect its current market value.

Commercial Substance

A concept in accounting that signifies a transaction causes a change in the future cash flows that is significant to a business.