Which of the Following Is NOT True Regarding Depletion

question 88

Multiple Choice

Which of the following is NOT true regarding depletion?

• A)Depletion is the systematic reduction of a natural resource's carrying value on the books.
• B)Depletion is computed in a similar manner to straight-line depreciation.
• C)Depletion is an expense that applies to the natural resources in the same way depreciation applies to fixed assets.
• D)Depletion is an expense that applies to natural resources in the same way amortization applies to intangible assets.

---

Definitions:

Small Business

Enterprises with limited revenue and number of employees, typically independently owned and operated.

Critical Mass

The minimum size or amount of resources required for a venture or process to become self-sustaining or to achieve a desired outcome.

Growth Stage

A phase in a company's or product's lifecycle characterized by rapid revenue and customer base expansion, typically requiring increased investment and resources.

Start-Up Process

The series of steps or activities undertaken to launch a new business, including planning, financing, and marketing.