How is Accumulated Depletion disclosed in the financial statements?
A)Contra-asset account
B)Expense account
C)Contra-liability account
D)Contra-revenue account

Question

Quizplus · Accepted Answer

Accumulated depletion is a contra-asset account, which means it is listed as a deduction from its related asset on the balance sheet, rather than as an expense on the income statement. This represents the total amount of natural resources that have been extracted or depleted, reducing the value of the underlying asset.

How Is Accumulated Depletion Disclosed in the Financial Statements