Which the Following Statements Regarding Accounting for Natural Resources Is

question 77

Multiple Choice

Which the following statements regarding accounting for natural resources is INCORRECT?

• A)Natural resources are often called wasting assets because they are actually physically used up over time.
• B)When the natural resource is extracted,the entity follows an approach much like the straight-line method of depreciation to account for the production.
• C)If all of the natural resource that is extracted is sold,the amount depleted is transferred directly from long-term assets to the income statement as depletion expense.
• D)The portion of the extracted natural resource that is not immediately sold,becomes inventory.

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Definitions:

Obedience

The act of following orders or directions from others, typically from a figure of authority.

Stanley Milgram

An American social psychologist best known for his research on obedience to authority.

Experimenter's Orders

Instructions given by researchers to participants in an experiment, which can influence the behavior or responses of those participants.

Obedience

The act of following orders or commands from those in authority, often studied within social psychology to understand how individuals respond to authority figures.