The amount of depletion of a coal mine in a year may differ from the depletion expense in the same year because
A)depletion expense includes other costs in addition to depletion.
B)depletion is based on the passage of time,whereas depletion expense is not.
C)the mine is not in operation all year.
D)some coal is unsold at the end of the year.

Question

Quizplus · Accepted Answer

Depletion expense is calculated based on the amount of coal extracted, but if some coal remains unsold at the end of the year, the expense recognized may differ from the actual depletion.

The Amount of Depletion of a Coal Mine in a Year