The Accumulated Depletion account is deducted from the cost of the natural resource in the statement of financial position.

Question

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The Accumulated Depletion account represents the total amount of natural resources that have been extracted and used up over time. This account is used to gradually reduce the recorded cost of the natural resource in the statement of financial position, reflecting the fact that the resource has been depleted through use. Therefore, the correct statement is that the Accumulated Depletion account is deducted from the cost of the natural resource in the statement of financial position.

The Accumulated Depletion Account Is Deducted from the Cost of the Natural