The balance of an Accumulated Depletion account is subtracted from the related natural resource account to determine the book value of the natural resource.

Question

Quizplus · Accepted Answer

This statement is true. Accumulated Depletion account is used to record the depletion of a natural resource over time, and its balance represents the total amount of depletion expenses incurred. To determine the book value of the natural resource, the balance of Accumulated Depletion account is subtracted from the related natural resource account, which reduces the recorded cost of the resource to its net book value.

The Balance of an Accumulated Depletion Account Is Subtracted from the Related