The most common method of recording depletion for accounting purposes is the
A) percentage depletion method.
B) decreasing charge method.
C) straight-line method.
D) units-of-production method.

Question

Quizplus · Accepted Answer

The units-of-production method is the most common method of recording depletion for accounting purposes. This method calculates depletion based on the number of units extracted during the period. It is often used for natural resources that are not depleted evenly over time, such as minerals or oil. This method is preferred over other methods because it provides a more accurate reflection of the actual depletion of the resource.

The Most Common Method of Recording Depletion for Accounting Purposes