When natural resources are used, the _____ expense account is increased for a portion of the cost of resources removed.
A) depletion.
B) deferral.
C) prepaid
D) amortization.

Question

Quizplus · Accepted Answer

The depletion expense account is used to track the cost of natural resources that have been removed and used. Depletion is used for natural resources such as oil, gas, and timber, and it is similar to depreciation for fixed assets. Therefore, choice A is the best answer.

When Natural Resources Are Used, the _____ Expense Account Is