?

Financial Accounting

Free Version

Upgrade subject to access all content

Easy

What is Depletion Expense and When Does It Occur?

FINACT-KHWZ9S

What is depletion expense and when might a company have amounts in that account?

A

Depletion expense occurs when a company uses up natural resources.

B

Depletion expense is the same as depreciation except it is for intangibles.

C

Depletion expense is the cost per ton of mineral deposits.

D

Depletion expenses is the amount reported on the Balance Sheet for firms that own natural resources.