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

question 59

Multiple Choice

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

• A)total depletion on the mine is based on the 1,200,000 tons.
• B)depletion expense is recognized on the 1,500,000 tons extracted.
• C)depletion expense is recognized on the 1,200,000 tons extracted and sold.
• D)a separate Accumulated Depletion account is set up to record depletion on the 300,000 tons extracted but not sold.

---

Definitions:

Decay

The natural process of decomposition or decline in quality, strength, or vigor over time.

Encoding Failure

A situation in which information fails to be stored into long-term memory, leading to the inability to recall it later.

Elaboration Failure

The inability to add detail or supplement information to a memory or concept, often leading to a lack of depth in understanding or recall.

Retroactive Interference

A process where new information interferes with the ability to recall older information.