The Accumulated Depletion Account Is

question 124

Multiple Choice

The accumulated depletion account is

• A)an intangible asset account
• B)reported on the balance sheet as a deduction from the cost of the mineral deposit
• C)reported on the income statement as other expense
• D)an expense account

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Definitions:

Short Run

A period in which at least one factor of production is fixed, limiting the ability of a firm to adjust to changes in market demand or supply.

Long-Run Industry

A period in which all factors of production and costs can be variable, allowing for adjustment to changes in market conditions.

Zero-Profit Equilibrium

A situation where a firm's total revenues exactly equal its total costs, resulting in no economic profit.

Entry

The act of entering or moving into a market or area of business to start operations or activities.