Machine-translated by Google. Questions are authored in English.
Top

Discussion

Depletion differs from depreciation in applying to

  • A.natural resources that are consumed
  • B.buildings and structures only
  • C.intangible assets such as patents
  • D.assets held for less than one year

Answer: A

Correct answer: natural resources that are consumed

Depletion applies to a wasting asset - a mine, an oil field, a quarry - whose value is consumed as the resource is removed rather than as equipment wears out. The parallel is exact in purpose and different in measure: depreciation follows time or use, depletion follows the quantity extracted.

No comment is present. Be the first to comment.
Loading…

Post your comment

Please log in or register to post a comment.