The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called
A) depletion
B) deferral
C) amortization
D) depreciation

Question

Quizplus · Accepted Answer

Depletion is specifically used for natural resources such as metal ores and minerals that are removed from the earth. It refers to the process of transferring the cost of these resources from an asset account to an expense account as they are used or extracted. Depreciation is used for tangible assets such as equipment and buildings, amortization is used for intangible assets such as patents and trademarks, and deferral refers to the process of delaying the recognition of an expense or revenue until a later period.

The Process of Transferring the Cost of Metal Ores and Other