The Process of Transferring the Cost of Metal Ores and Other

question 106

Multiple Choice

The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called

• A) depletion
• B) deferral
• C) amortization
• D) depreciation

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Definitions:

Compounded Semi-annually

This refers to the process of applying interest to an initial sum plus any previously earned interest, and this action occurs twice a year.

Compounded Quarterly

Refers to the process of calculating and adding interest to the principal balance four times a year.

Eight Year Note

A debt instrument with a fixed interest rate and a maturity of eight years, at which point the principal sum is repaid to investors.

Yield

Yield is the income returned on an investment, such as the interest or dividends received from holding a particular security, expressed usually as a percentage of the investment's cost.