If a Natural Resource Is Extracted and Not Sold,we

question 110

Multiple Choice

If a natural resource is extracted and not sold,we:

• A)debit Depletion Expense and credit Accumulated Depletion.
• B)debit Cost of Goods Sold and credit Inventory.
• C)debit Accumulated Depletion and credit Natural Resource.
• D)debit Inventory and credit Natural Resource.

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Definitions:

Journal Entries

Entries made into an accounting ledger to document financial transactions, ensuring the debits equal the credits.

Voting Shares

Equity securities that grant the holder the right to vote on company matters, such as board elections and major corporate decisions.

Net Income

The net income of a business once all costs and taxes are subtracted from its total revenues.

Fair Value Through Other Comprehensive Income

A financial accounting method where certain assets are revalued periodically and changes are recorded in other comprehensive income.