Finra Exam Series-7 Topic 5 Question 87 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 87
Topic #: 5

[All Series-7 Questions]

In terms of depletion, percentage depletion is better than cost depletion because it:

Apermits recovery of more than the original cost

Bis limited to production

Cis more widely available

Dis not subject to recapture

Show Suggested Answer

Suggested Answer: B

balance sheet. This report reflects the entire condition of the company by showing all assets, liabilities, and components of net worth.

by Christiane at May 13, 2024, 07:44 AM

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5 hours ago

I see both sides, but I think percentage depletion is more widely available which makes it a better option.

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1 days ago

I disagree, I believe cost depletion is better as it is limited to production.

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5 days ago

I think percentage depletion is better because it permits recovery of more than the original cost.

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