As Natural Resources Are Used Up,the Client Has to Recognize

question 30

Multiple Choice

As natural resources are used up,the client has to recognize which of the following types of expense?

• A)Depreciation expense.
• B)Depletion expense.
• C)Amortization expense.
• D)Reclamation expense.

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Definitions:

Coupon Rate

The interest rate on a bond, representing the annual interest payment made by the bond issuer relative to the bond's face value.

Amortization

The gradual reduction of a debt or the spreading out of the cost of an intangible asset over its useful life.

Discount

A reduction from the usual cost of something, often applied to encourage sales or offered to certain groups.

Bonds Payable

Long-term liabilities represented by negotiable certificates, indicating a promise to pay a specified sum of money plus interest at defined intervals.