Overestimating the number of tons of a mineral that can be mined over a mineral deposit's life will result in
A)understated total assets each year.
B)understated net income each year.
C)understated depletion expense each year.
D)no effect on total assets each year.

Question

Quizplus · Accepted Answer

Overestimating the number of tons of a mineral that can be mined over a mineral deposit's life will result in understated depletion expense each year as the depletion rate will be based on the estimated amount of mineral available for extraction. This in turn will result in overstated net income and total assets each year.

Overestimating the Number of Tons of a Mineral That Can