Accumulated Depletion Group of answer choicesis used by all companies with natural resourceshas a normal debit balance.is a contra-asset account.is never shown on the balance sheet.
Question
Accumulated Depletion Group of answer choicesis used by all companies with natural resourceshas a normal debit balance.is a contra-asset account.is never shown on the balance sheet.
Solution
Accumulated Depletion is a contra-asset account. This means it is an account which is subtracted from an associated account. In this case, it is subtracted from the value of the natural resource asset on the balance sheet. It represents the total to date of the amount of the resource that has been depleted or used up. It does not have a normal debit balance, as it is credited each time a depletion expense is recorded. It is used by companies with natural resources to track the reduction of their resources over time. It is shown on the balance sheet as a deduction from the natural resource asset to which it relates.
Similar Questions
A debit is not the normal balance for which account listed below? Group of answer choices Dividends Cash Accounts Receivable Service Revenue
The balance in the Accumulated Depreciation account represents the
Accumulated Depreciation has a normal balance which indicates that it reduces total assets.
If an asset account such as Equipment has a normal debit balance, the associated contra account should have a normal balance. (Enter one word per blank.)
The balance in the Accumulated Depreciation account represents the Group of answer choicescash fund to be used to replace plant assets.amount to be deducted from the cost of the plant asset to arrive at its fair market valueamount charged to expense in the current period.amount charged to expense since the acquisition of the plant asset.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.