Depletion:
A) Is the process of allocating the cost of natural resources to periods in which they are consumed.
B) Is also called depreciation.
C) Is also called amortization.
D) Is an unrealized expense reported in equity.
E) Is the process of allocating the cost of intangibles to periods in which they are used.

Question

Quizplus · Accepted Answer

Depletion refers specifically to the allocation of the cost of natural resources over the periods in which they are consumed or used up. Depreciation is a similar concept, but it refers to the allocation of the cost of tangible assets (like equipment or buildings) over their useful lives. Amortization is the allocation of the cost of intangible assets (like patents or copyrights) over their useful lives. Reporting an unrealized expense in equity would not be considered depletion, depreciation, or amortization.