Asked by Brayan Checo Rosario on May 18, 2024
Verified
To record the depletion of natural resources, the most common method is to use the double declining-balance method.
Double Declining-Balance
An accelerated depreciation method that doubles the normal depreciation rate, reducing the book value of assets more quickly in the initial years.
- Familiarize with the depletion method used for natural resources.
Verified Answer
KE
Kimberly EspinozaMay 20, 2024
Final Answer :
False
Explanation :
The most common method to record the depletion of natural resources is the units-of-production method, not the double declining-balance method. The units-of-production method allocates the cost of the natural resource based on the quantity of resource extracted during the period.
Learning Objectives
- Familiarize with the depletion method used for natural resources.