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Underestimating the number of tons of a mineral that can be mined over a mineral deposit’s life will result in:?

a. overstated net income each year.

b. overstated total assets each year.

c. overstated depletion expense each year..

d. no effect on total assets each year.

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/07/07
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes, Option C is the right answer.

Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

C. overstated depletion expense each year==================

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct answer is c. overstated depletion expense each year.

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

C--------------------------------------

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