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Financial Accounting

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Accounting for the Cost of Natural Resources: Period Costs

FINACT-1SWPK5

The process of allocating the cost of a natural resource, such as a salt mine or oil field, to the period in which the mineral is consumed or extracted results in amount recorded in the Income Statement and Balance Sheet.

What account is impacted on the balance sheet?

A

Depletion expense.

B

Accumulated depletion.

C

Depreciation expense.

D

Accumulated depreciation.